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Questions and Answers
What is the current corporate income tax rate as mentioned?
What is the current corporate income tax rate as mentioned?
Which of the following is NOT a main type of excise tax?
Which of the following is NOT a main type of excise tax?
Which type of tax is often referred to as a 'special duty tax'?
Which type of tax is often referred to as a 'special duty tax'?
What proposal is made by the Biden Administration regarding corporate income tax?
What proposal is made by the Biden Administration regarding corporate income tax?
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How many states impose income taxes as mentioned in the content?
How many states impose income taxes as mentioned in the content?
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What unique tax situation do professional athletes often navigate concerning state income taxes?
What unique tax situation do professional athletes often navigate concerning state income taxes?
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Which of the following taxes is specifically identified as potentially being a tax according to the content?
Which of the following taxes is specifically identified as potentially being a tax according to the content?
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Which of the following is considered a component of fiscal policy?
Which of the following is considered a component of fiscal policy?
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What was the life expectancy for males in 1900?
What was the life expectancy for males in 1900?
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By what year did life expectancy for females reach 78 years?
By what year did life expectancy for females reach 78 years?
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What was the estimated worker to recipient ratio for Social Security today?
What was the estimated worker to recipient ratio for Social Security today?
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Which year marked the introduction of the Medicare program?
Which year marked the introduction of the Medicare program?
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How much of the Medicare budget is used by the elderly (over 65)?
How much of the Medicare budget is used by the elderly (over 65)?
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What percentage of income is typically taxed for Medicare on earnings over $200K?
What percentage of income is typically taxed for Medicare on earnings over $200K?
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What is the projected worker to recipient ratio for Social Security by 2030?
What is the projected worker to recipient ratio for Social Security by 2030?
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In which year did life expectancy exceed 75 years for both males and females?
In which year did life expectancy exceed 75 years for both males and females?
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What is one of the four major criteria that a good tax system should meet according to Adam Smith?
What is one of the four major criteria that a good tax system should meet according to Adam Smith?
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What percentage is the Social Security Tax up to the maximum taxable income in 2024?
What percentage is the Social Security Tax up to the maximum taxable income in 2024?
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Which term refers to a program that collects payments from current participants to pay benefits to current beneficiaries?
Which term refers to a program that collects payments from current participants to pay benefits to current beneficiaries?
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What significant demographic shift is currently affecting the Social Security system?
What significant demographic shift is currently affecting the Social Security system?
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Which year had the maximum taxable income set at $160,200?
Which year had the maximum taxable income set at $160,200?
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What does the term 'matching program' refer to in the context of Social Security?
What does the term 'matching program' refer to in the context of Social Security?
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Which of the following best describes the structure of the Social Security Tax?
Which of the following best describes the structure of the Social Security Tax?
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According to Adam Smith, how should taxes be administered?
According to Adam Smith, how should taxes be administered?
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What is a common method of taxing marijuana in fully legal states?
What is a common method of taxing marijuana in fully legal states?
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Which statement accurately reflects the banking situation for marijuana businesses?
Which statement accurately reflects the banking situation for marijuana businesses?
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What is one potential benefit of lottery systems as mentioned?
What is one potential benefit of lottery systems as mentioned?
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What impact did Mexico's soda tax have on soda sales?
What impact did Mexico's soda tax have on soda sales?
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What is a challenge associated with the taxation of marijuana?
What is a challenge associated with the taxation of marijuana?
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What was the main reason for the implementation of the sugary drinks tax in Philadelphia?
What was the main reason for the implementation of the sugary drinks tax in Philadelphia?
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According to the document, which of the following is a common local tax used in funding education?
According to the document, which of the following is a common local tax used in funding education?
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What approach did former Mayor Bloomberg propose to combat sugary drink consumption in New York City?
What approach did former Mayor Bloomberg propose to combat sugary drink consumption in New York City?
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What was the rate of the sugary drink tax passed by the Philadelphia City Council?
What was the rate of the sugary drink tax passed by the Philadelphia City Council?
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Which of the following are considered as 'small taxes' that individuals might overlook?
Which of the following are considered as 'small taxes' that individuals might overlook?
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Which gap in taxation philosophy is indicated by 'If you want less of something… TAX IT !!'?
Which gap in taxation philosophy is indicated by 'If you want less of something… TAX IT !!'?
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Which component is NOT mentioned as part of education funding?
Which component is NOT mentioned as part of education funding?
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What does the term 'gross receipts tax' refer to in the context of utility bills?
What does the term 'gross receipts tax' refer to in the context of utility bills?
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What is the total amount of fees categorized under Regulatory Recovery in the provided information?
What is the total amount of fees categorized under Regulatory Recovery in the provided information?
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Which fee has the highest amount listed in the provided details?
Which fee has the highest amount listed in the provided details?
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What is the approximate amount of property tax for a $825,000 house located in Dallas County?
What is the approximate amount of property tax for a $825,000 house located in Dallas County?
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How much is the FC Regulatory Fee for Cable?
How much is the FC Regulatory Fee for Cable?
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Estimate the personal property tax for a typical business with equipment valued at $2.3 million.
Estimate the personal property tax for a typical business with equipment valued at $2.3 million.
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Which of the following is the correct fee for the 911 Equalization Fee?
Which of the following is the correct fee for the 911 Equalization Fee?
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What is the estimated value of the personal property for the typical plant?
What is the estimated value of the personal property for the typical plant?
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Which unusual tax has the highest percentage listed?
Which unusual tax has the highest percentage listed?
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What is a current issue faced by the marijuana industry concerning tax revenue?
What is a current issue faced by the marijuana industry concerning tax revenue?
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Which method of marijuana taxation is NOT mentioned in the content?
Which method of marijuana taxation is NOT mentioned in the content?
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What estimated annual revenue is generated from lottery spending in the U.S.?
What estimated annual revenue is generated from lottery spending in the U.S.?
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What was one observable effect of Mexico's soda tax?
What was one observable effect of Mexico's soda tax?
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Which of the following statements about lotteries is true based on the provided information?
Which of the following statements about lotteries is true based on the provided information?
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What was the worker to recipient ratio for Social Security in 1960?
What was the worker to recipient ratio for Social Security in 1960?
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What is the estimated worker to recipient ratio for Social Security by 2030?
What is the estimated worker to recipient ratio for Social Security by 2030?
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What percentage increase in Medicare tax applies to earned income over $200K?
What percentage increase in Medicare tax applies to earned income over $200K?
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In which year did life expectancy for males reach 70 years?
In which year did life expectancy for males reach 70 years?
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As of 2016, what was the life expectancy for males?
As of 2016, what was the life expectancy for males?
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By what percentage did life expectancy for females increase from 1900 to 2010?
By what percentage did life expectancy for females increase from 1900 to 2010?
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What is one of the four major criteria for a good tax system according to Adam Smith?
What is one of the four major criteria for a good tax system according to Adam Smith?
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What is the Social Security Tax rate in 2024?
What is the Social Security Tax rate in 2024?
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What issue is currently affecting the Social Security system due to demographic changes?
What issue is currently affecting the Social Security system due to demographic changes?
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Which year had the highest maximum taxable income for Social Security before 2024?
Which year had the highest maximum taxable income for Social Security before 2024?
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What characteristic describes the Social Security Tax structure?
What characteristic describes the Social Security Tax structure?
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What is a common criticism of the Social Security system referred to as a 'Ponzi' program?
What is a common criticism of the Social Security system referred to as a 'Ponzi' program?
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What financial impact does the retirement of the Baby Boom generation have on Social Security?
What financial impact does the retirement of the Baby Boom generation have on Social Security?
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What is the proposed corporate income tax rate increase suggested by the Biden Administration?
What is the proposed corporate income tax rate increase suggested by the Biden Administration?
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Which of the following types of taxes is NOT commonly categorized as an excise tax?
Which of the following types of taxes is NOT commonly categorized as an excise tax?
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What is one key aspect that influences state income tax for professional athletes?
What is one key aspect that influences state income tax for professional athletes?
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Which tax is considered a tool of fiscal policy?
Which tax is considered a tool of fiscal policy?
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What is a unique consideration for professional athletes regarding state income taxes?
What is a unique consideration for professional athletes regarding state income taxes?
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Which type of state tax can be classified as a 'special duty tax'?
Which type of state tax can be classified as a 'special duty tax'?
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Which of the following is NOT a federal tax summarized in the document?
Which of the following is NOT a federal tax summarized in the document?
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How many states are noted to impose income tax?
How many states are noted to impose income tax?
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What is the total amount of fees listed for Regulatory Recovery?
What is the total amount of fees listed for Regulatory Recovery?
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Which tax has the highest individual amount listed?
Which tax has the highest individual amount listed?
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Estimate the property tax for a real property valued at $94,000 in Harris County.
Estimate the property tax for a real property valued at $94,000 in Harris County.
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What is the value of personal property tax for a business with equipment valued at $2.3 million?
What is the value of personal property tax for a business with equipment valued at $2.3 million?
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Which of the following taxes is specifically identified as a unique tax, according to the content?
Which of the following taxes is specifically identified as a unique tax, according to the content?
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What is the approximate property tax for a house valued at $825,000 in Dallas County?
What is the approximate property tax for a house valued at $825,000 in Dallas County?
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Which of the following fees contributes the least amount among those listed?
Which of the following fees contributes the least amount among those listed?
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Which fee is associated with the recovery for municipal costs?
Which fee is associated with the recovery for municipal costs?
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What was the main motivation behind the implementation of the sugary drinks tax in Philadelphia?
What was the main motivation behind the implementation of the sugary drinks tax in Philadelphia?
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What is the rate of the sugary drink tax that was passed by the Philadelphia City Council?
What is the rate of the sugary drink tax that was passed by the Philadelphia City Council?
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Which of the following is NOT considered a local tax mentioned in the content?
Which of the following is NOT considered a local tax mentioned in the content?
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What is one of the primary uses of the revenue generated from the sugary drinks tax in Philadelphia?
What is one of the primary uses of the revenue generated from the sugary drinks tax in Philadelphia?
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Which statement reflects the proposed strategy regarding consumption of products through taxation?
Which statement reflects the proposed strategy regarding consumption of products through taxation?
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What type of tax is described as being levied at the distribution level on sugary drinks?
What type of tax is described as being levied at the distribution level on sugary drinks?
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What aspect of funding was highlighted as a primary component of local education funding?
What aspect of funding was highlighted as a primary component of local education funding?
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Which of the following utility-related taxes is mentioned in the small taxes section?
Which of the following utility-related taxes is mentioned in the small taxes section?
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Study Notes
Funding the Public Sector (Part 2)
- Adam Smith's perspective on taxation emphasizes the public benefit of government services like national defense and governance. He argues that the population should contribute towards these costs proportionally to their ability to pay.
- Effective taxation should meet four criteria:
- Proportionality to income or ability to pay.
- Certainty instead of arbitrariness.
- Payable conveniently for the taxpayer.
- Inexpensive administration and collection.
Social Security Tax
- Also known as Payroll Tax, it's governed by the FICA of 1935.
- It's a matching program where both the employee and employer contribute.
- Generally considered a flat tax, though the progressiveness of contribution can be debated.
- It's a pay-as-you-go program. Taxing incomes up to a certain maximum for each year.
- The 2024 maximum taxable income for Social Security is $168,600. (Specific maximums for previous years are also listed)
Social Security "Issues"
- Baby Boomers (1946-1964) are retiring in large numbers, leading to fewer people contributing to the system.
- Increased life expectancy is a challenge. Contributing numbers are less than the receiving numbers over time. (Data on life expectancy by decade is included)
Life Expectancy
- Information on life expectancy data is available at a link.
Funding each Social Security Recipient
- The ratio of workers to retirees is changing. (Visualizations about funding are shown).
Medicare
- The 1965 Medicare program is established and matched by employers.
- The employer matches the portion of earned income over a specified amount.
- Income earned over $200,000 is taxed and is subject to a 0.9% increase.
- Medicare taxes all working income and does not include a ceiling.
Corporate Income Tax
- The current corporate tax rate is 21%.
- There has been a proposal for a 28% rate.
- A minimum tax of 15% has been proposed.
- Corporation tax is a fiscal policy tool.
- Questioned on who pays corporate income tax is given.
- Data charts are available for prior rates of corporations in different countries.
Excise Tax
- Excise tax involves taxes on specific goods and services, including fuel, tobacco, alcohol, airline tickets, healthcare-related goods and others.
Federal Taxes
- A summary of federal taxes is provided, listing personal income tax, social security, corporate income tax, excise tax, unemployment tax and estate tax.
State Taxes
- Income tax is collected in 41 states.
- Interest and dividend income is specifically taxed in some states.
- State taxes are collected on professional athletes' income from multiple states.
State Income Taxes for Pro Athletes
- Information on the different laws and application of income tax to professional athletes in various states. This includes how to determine resident vs. non-resident considerations, duration of residency, and additional considerations like registration and permits.
- How states handle income in multiple states.
Marijuana Taxes
- Details of taxation for legal marijuana use are given, including how they vary between states.
- Legalization in 22 states and Washington, D.C.
- Tax is applied various ways, by sales percentage, weight, potency.
Lotteries
- Lotteries are a form of voluntary taxation.
- Inefficient depending on certain views.
- $70B is estimated in yearly proceeds.
American Spending in 2014
- Graph and data on spending in 2014 in different categories.
Additional Taxes (Sugar Tax)
- Mention of 'excise' taxes and providing an example of a sugar tax enacted in Mexico to address obesity.
- There is consideration of raising taxes on sugary drinks in some other localities in an attempt to curb obesity.
Static vs Dynamic Tax Theory
- The differing viewpoints of politicians and economists on the effects of taxation.
- Politicians are more focused on the static immediate effects of imposing a tax. Economists consider the dynamic effects, which considers that taxes can influence consumer behavior.
Income Tax Practice Question
- A question to calculate income taxes for different income brackets with varying percentage thresholds.
Local Taxes
- Local taxes, including sales tax, income tax, and property tax, are described.
Texas – Tax-Free Emergency Purchases
- Information on periods for tax-exempt emergency purchases in Texas.
Small (Unseen) "Taxes"
- Information on added taxes, like garbage and gas taxes.
Cable Taxes
- Summary of various fees related to cable TV.
Property Taxes
- Information about real property (real estate) and personal property taxes.
Real Property Tax (Example)
- Example of how real property tax is applied in a local area, including property value and amount of tax.
Business (Personal Property)
- Notes on personal property taxes for businesses.
- Example of typical plant and related equipment tax calculation.
Other Strange Taxes
- Examples of unusual taxes applied in various states, including taxes on tattoos and other miscellaneous items.
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Description
This quiz explores Adam Smith's perspective on taxation and the principles of effective taxation. It also covers the fundamentals of Social Security Tax, including its structure and the contributions of both employees and employers. Test your understanding of how these systems support public services.
