The three different levels of government​ (federal, state, and​ local) must impose taxes to carry out their functions. For each of the types of taxes​ below, discuss which level of government primarily uses that type of tax.

The three different levels of government​ (federal, state, and​ local) must impose taxes to carry out their functions. For each of the types of taxes​ below, discuss which level of government primarily uses that type of tax.

a. Property taxes

b. Excise taxes

c. Sales taxes

d. Income taxes

e. Employment taxes

A​ "good" tax structure has five characteristics.

a.	Briefly discuss the five characteristics.
b.	Using the five​ characteristics, evaluate the following tax​ structures:
	1. Federal income tax
	2. State sales tax
	3. Local ad valorem property tax

a. Briefly discuss the five characteristics.

For each​ characteristic, choose the corresponding letter that matches its description.

b1. Using the five​ characteristics, evaluate the federal income tax.

Select which​ characteristic(s) the federal income tax meets the criteria of fairly well and which​ characteristic(s) the federal income tax does not meet. ​(If a box is not used in the table leave the box​ empty.)

b2. Using the five​ characteristics, evaluate the state sales tax.

Select which​ characteristic(s) the state sales tax meets the criteria of fairly well and which​ characteristic(s) the state sales tax does not meet. ​(If a box is not used in the table leave the box​ empty.)

b3. Using the five​ characteristics, evaluate the local ad valorem property tax.

Select which​ characteristic(s) the local ad valorem property tax meets the criteria of fairly well and which​ characteristic(s) the local ad valorem property tax does not meet. ​(If a box is not used in the table leave the box​ empty.)

Two​ commonly-recognized measures of the fairness of an income tax structure are​ "horizontal equity" and​ "vertical equity".

a.	Discuss what is meant by horizontal equity and vertical equity as it pertains to the income tax.
b.	Why is it so difficult to design a​ "fair" tax​ structure?

What is meant by the term​ "double taxation" of​ corporations?


Choose an example of double taxation using a corporation and shareholder.



What types of taxpayers are more likely to be audited by the​ IRS?
Select the types of taxpayers are more likely to be audited by the IRS. ​(Complete all answer​ boxes.)