Title: QUIZ: Individual Income Tax (Part I: The Basics) -- Page One Economics®
Course: Kelly's Copy and Export Course > Section: Individual Income Tax: The Basics and New Changes -- Page One Economics®

Q: In the United States, the authority to levy an income tax lies within the
- 10th Amendment to the U.S. Constitution.
- office of the U.S. president.
- Constitution of the United States.
- Internal Revenue Service.
A: Constitution of the United States.

Q: Taxable income, tax deductions, exemptions, and expenses are defined by the
- income tax laws passed in 1913.
- 16th Amendment to the U.S. Constitution.
- tax laws that are passed by the Internal Revenue Service.
- tax laws as passed by Congress and signed into law by the U.S. president.
A: tax laws as passed by Congress and signed into law by the U.S. president.

Q: The responsibility for implementing tax legislation, interpreting tax law, ensuring taxpayers’ compliance with the law, and collecting the income tax is given to
- the U.S. president.
- the Internal Revenue Service.
- Congress as the primary agency for protecting taxpayers.
- the Commissioner of the Treasury.
A: the Internal Revenue Service.

Q: The federal income tax is designed to ensure that taxpayers with
- higher taxable incomes pay a smaller percentage rate than do taxpayers with lower taxable incomes.
- higher taxable incomes pay a larger percentage rate than do taxpayers with lower taxable incomes.
- lower taxable incomes pay a larger percentage rate than do taxpayers with higher taxable incomes.
- higher taxable incomes pay equal percentage rates as taxpayers with lower taxable incomes.
A: higher taxable incomes pay a larger percentage rate than do taxpayers with lower taxable incomes.

Q: The tax percentage rates within tax brackets often change
- when the IRS has new leadership.
- to support legislative actions and government expenditures.
- to increase the taxable income of taxpayers.
- as a means to decrease a taxpayer’s standard deduction.
A: to support legislative actions and government expenditures.

Q: In 2017, the amount of revenue generated from the individual income tax was __________ of the total amount of federal revenue and is the __________
- almost one-third; second largest source of revenue generated.
- a small percentage; main reason for the 2017 Tax Cuts and Jobs Act.
- almost 48 percent; second largest source of revenue to support taxpayers.
- almost 48 percent; leading source of revenue to support government spending.
A: almost 48 percent; leading source of revenue to support government spending.

Q: The highest tax percentage rate for the top income bracket
- has always been under the 50 percent tax rate.
- occurred during WWII.
- occurred during WWI and again in the early 1930s.
- is set by the Constitution.
A: occurred during WWII.

Q: If income tax laws were simplified by reducing the number of brackets while keeping the rates the same,
- the result would be a less progressive tax structure.
- the result would be a more progressive tax structure.
- it would be more difficult to file a return.
- the ability-to-pay principle would be reinforced.
A: the result would be a less progressive tax structure.