Names: John Patrick Q.

Cuasay

Henreign C. Villanueva

Section: AC1B

QUESTIONS AND ANSWERS

Part 1: Identification
Direction: Identify what is being ask in the questions below.

1. What classification of taxes takes the same percentage of income from all people?

answer: Proportional tax

2. What type of taxes also called a personal income tax?

answer: Individual Income tax

3. Who is the seventeenth-century french stateman who declares principles of taxation?

answer: Jean-Babtiste Colbert

4. What classification of taxes takes a higher percentage of income as income rises?

answer: Progressive Tax

5. What is the most controversial type of taxes?

answer: Corporate Income Tax

6. Who is the Scottish economist who laid out the principles of taxes in his landmark treatise The Wealth
of Nations in 1776?

answer: Adam Smith

7. What classification of taxes takes the smaller percentage of income as income rises?

answer: Regressive Tax

8. What classification of tax called degressive when the higher incomes do not make a due sacrifice?

answer: Degreasive Tax

9. What type of tax applied only to wages and salaries?

answer: Payroll Tax

10. What types of tax imposed a tax on a wide variety of good and in some cases of services?

answer: General Sales Tax

11. What types of tax levied on sales of goods or services?

answer: Consumption Tax

12. What are the two main principles of tax system?

answer: Fairness and Efficiency

13. What principle of tax holds that people’s taxes should be based upon their ability to pay, usually as
measured by income or wealth?

answer: Ability-To-Pay Principle

14. Is administration cost a kind of efficient principle measures?

answer: Yes

15. What cost of efficiency principle is the cost complying with the system—paying taxes—costs
taxpayers money above and beyond the actual tax bill?

answer: Compliance cost

16. What occurs when a government or other authority requires that a fee be paid by citizens and
corporations, to that authority?

answer: Taxation

17. According to studies, how many percent of GDP is the bare minimum tax revenue for countries to be
able to provide basic services to their citizens.

answer: 15 percent
True or False

Direction: Write true if the statement is correct and false if it is wrong.

18. When citizens see the tax system as being fair and find value in the public services they receive, they
are unlikely to comply with tax laws.

answer: False

19. Tax occurs on physical assets, including property and transactions, such as a sale of stock, or a home.

answer: True

20. Taxation is both inherent and legislative in nature.

answer: True

21. Historically, taxes have been used in many countries to discourage healthy behaviors and assist less
healthy ones. Ex. tobacco taxation to increase tobacco consumption.

answer: False

22. Taxes pay for many of the things that are fundamental to functioning societies around the world,
such as health care, schools, and social services.

answer: True

23. The purpose of taxes is to generate revenue for the government so that it can provide public goods
and services.

answer: True

24. It is not required to have justification and explanation in doing taxation.

answer: False

25. The most basic function of taxation is to fund government expenditures.

answer: True