5 Questions
Which theory in taxation states that without taxes, a government would be paralyzed for lack of power to activate and operate it, resulting in its destruction?
Lifeblood theory
What is the actual effort exerted by the government to effect the exaction of what is due from the taxpayer known as?
Collection
Which of the following is NOT the function of Congress regarding the power of taxation?
Identify who should collect the tax
Which one of the following is an example of a tax?
Salary
What is the function of Congress regarding the power of taxation?
Collect the tax levied under the law
Study Notes
Taxation Theories
- The "Ability to Pay" theory states that without taxes, a government would be paralyzed for lack of power to activate and operate it, resulting in its destruction.
Taxation Terms
- The actual effort exerted by the government to effect the exaction of what is due from the taxpayer is known as "Enforcement".
Congressional Functions
- The function of Congress regarding the power of taxation is to lay and collect taxes, duties, and excises.
- One of the functions NOT performed by Congress is to delegate the power of taxation.
Types of Taxes
- An example of a tax is an "Ad Valorem" tax, which is a tax levied on the value of goods or property.
Test your knowledge on the basic principles of taxation with this Taxation Quizzer. Explore theories in taxation, such as the power of government through taxes and the impact on economic activity. Challenge yourself and enhance your understanding of income taxation.
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