Which of the Following Types of Taxes Rely Solely on "Income

question 101

Multiple Choice

Which of the following types of taxes rely solely on "income" as the tax base for determining the amount of tax liability?
I.Sales Tax
II.Property Tax
III.Gift Tax
IV.Social Security Tax
V.Excise Tax
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• A)Statements I, II, III, IV, and V are correct.
• B)Statements I, III, and IV are correct.
• C)Statements II and IV are correct.
• D)Only statement IV is correct.
• E)None of the above types of taxes relies on income for its tax base.

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Definitions:

Equal Bargaining Power

The situation in which all parties involved in a negotiation or agreement have similar negotiating strength and no one side has undue influence over the other.

Quasi Contract

An obligation imposed by law to prevent unjust enrichment, even though the parties involved did not enter into a contractual agreement.

Restitution

A legal principle requiring a party to return or compensate for any loss or harm they have caused to another.

Oral Agrees

Agreements or contracts made through spoken communication rather than written, subject to certain legal limitations.