1. Income from all sources is taxed, unless specifically exempted by:
2. To pay the debts of the Revolutionary War, Congress levied excise taxes on all of
the items below except:
3. The Revenue Act of
, funded the Civil War. It was the first U.S. personal
income tax.
4. The 1916 Act raised the lowest tax rate from 1% to 2% and raised the top rate
to 15% for taxpayers with incomes in excess of $1.5 million. The 1916 Act also imposed taxes on estates and
.
5. Short-term capital gains are taxed at the ordinary income tax rates.
Long-term capital gains have tax rates which are:
6. In
1765, the English Parliament needed funds to pay for its war
against France. The first tax imposed directly on the American
colonies was the:
7. On
December 16, 1773, a group of Americans disguised as Indians
boarded a ship and threw 342 chests filled with _______________
into Boston Harbor to protest England’s tax.
8. The
______ amendment allowed the Federal government to tax the
income of individuals without regard to the population of each
State.
9. In
1935 Congress passed the _________________ Act. This law
provides payments to the aged, the needy, the handicapped, and
to certain minors. These programs were initially financed by a
2% tax, one-half of which was withheld directly from an
employee's paycheck and one-half of which was collected from
employers. The tax was levied on the first $3,000 of the
employee's salary or wages.
10. An
individual pays tax in a given tax bracket only for each dollar
within that tax bracket's range. The individual's marginal tax
rate, the percentage of tax paid on the last dollar earned, has
no effect on any underlying income taxed in the lower bracket.
This ensures that every rise in a person's pre-tax income
results in an increase of their tax paid.
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