Which of the Following Taxes, as Structured in the United

question 52

Multiple Choice

Which of the following taxes, as structured in the United States, is the best example of ability-to-pay taxation?

• A)The federal excise tax on cigarettes.
• B)The federal corporate income tax.
• C)A state imposed highway user tax.
• D)A proportional state sales tax.
• E)The federal personal income tax.

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Definitions:

Cash Flow Statement

A financial document that provides a summary of the cash inflows and outflows for a business over a certain period of time.

Net Worth Statement

A financial document summarizing the assets and liabilities of an individual or entity, showing the net value.

Operating Objective

A specific, measurable goal that an organization seeks to achieve in its day-to-day operations to meet its strategic aims.

Strategic Management

The ongoing planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its goals and objectives, with a focus on long-term strategic direction.