Which of the Following State Taxes Is Unconstitutional

question 3

Multiple Choice

Which of the following state taxes is unconstitutional:

• A) Hawaii imposed a 20 percent tax on all alcoholic beverages except for local products
• B) Michigan exempted from state income taxes the retirement benefits paid to state employees, but taxed all other retirement income, such as retired federal government employees' benefits
• C) North Dakota imposed state sales taxes on out-of-state firms doing mail-order business with North Dakota residents
• D) all of the other specific choices are unconstitutional
• E) none of the other specific choices are unconstitutional

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, important in the evaluation of investment opportunities.

Monthly Payments

Regular payments made over a period of time, often associated with loans or leases.

Financing

The act of financing commercial operations, procuring items, or placing capital into investments.

Loan Payment

A payment made by a borrower to a lender, consisting of both principal and interest, on a borrowed sum.