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Questions and Answers
Taxation is the process by which the sovereign raises revenues to defray government expenses.
Taxation is the process by which the sovereign raises revenues to defray government expenses.
True (A)
Payment of taxes is not based on the ability to pay principle.
Payment of taxes is not based on the ability to pay principle.
False (B)
Taxes are generally payable in cash and not accepted in the form of checks, promissory notes, or in kind.
Taxes are generally payable in cash and not accepted in the form of checks, promissory notes, or in kind.
True (A)
Taxes can be levied on acts, rights, or privileges, such as documentary tax.
Taxes can be levied on acts, rights, or privileges, such as documentary tax.
Taxes are levied by the law making body of the state.
Taxes are levied by the law making body of the state.
Flashcards
What is taxation?
What is taxation?
The process by which the government collects money to fund its operations.
Is the ability-to-pay principle used in taxation?
Is the ability-to-pay principle used in taxation?
Taxes are based on the ability of individuals or businesses to pay. Those with higher incomes or profits generally pay more taxes.
How are taxes generally paid?
How are taxes generally paid?
Taxes are usually paid in cash, not with other forms of payment like checks or goods.
Can taxes be levied on more than just income?
Can taxes be levied on more than just income?
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Who sets the tax laws?
Who sets the tax laws?
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Study Notes
Taxation Basics
- Taxation is the process by which the government raises revenues to cover its expenses.
- The ability to pay principle is not the basis for payment of taxes.
Characteristics of Taxes
- Taxes are typically payable in cash.
- Taxes are not accepted in the form of checks, promissory notes, or in kind.
Types of Taxes
- Taxes can be levied on acts, rights, or privileges.
- Examples of taxes on acts, rights, or privileges include documentary tax.
Authority to Levy Taxes
- Taxes are levied by the law making body of the state.
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