1. Which, if any, of the following statements best describes the history of the Federal
income tax?
a. It existed during the Civil War.
b. The Federal income tax on corporations was held by the U.S. Supreme Court to
be contrary to the U.S. Constitution.
c. The Federal income tax on individuals was held by the U.S. Supreme Court to be
allowable under the U.S. Constitution.
d. Both the Federal income tax on individuals and on corporations was held by the
U.S. Supreme Court to be contrary to the U.S. Constitution.
e. None of the above.
2. Which, if any, is not one of Adam Smith’s canons of taxation?
a. Economy.
b. Certainty.
c. Simplicity.
d. Convenience.
e. Equality.
3. Which, if any, of the following taxes are proportional (rather than progressive)?
a. Federal corporate income tax.
b. Federal employment taxes (i.e., FICA, FUTA).
c. Federal estate tax.
d. Federal gift tax.
e. All of the above.
4. Which, if any, of the following transactions will increase a taxing jurisdiction’s revenue
from the ad valorem tax imposed on real estate?
a. A resident dies and leaves his farm to his church.
b. A large property owner issues a conservation easement as to some of her land.
c. A tax holiday issued 10 years ago has expired.
d. A bankrupt motel is acquired by the Red Cross and is to be used to provide
housing for homeless persons.
e. None of the above.
