Question & Answer: T has a tax base of $30,000 and pays a tax of $2,300 on the first $25,000 and on the next $5,000 T has avera…..

T has a tax base of $30,000 and pays a tax of $2,300 on the first $25,000 and on the next $5,000 T has average tax rate of a. 10 percent b. 15 percent c. 20 percent e. None of the above Which one of the following statement is a. Tax credits reduce tax liability at the marginal tax rate, b. Both tax credit and tax are to taxable income c. Dollar for dollar, tax credit are more valuable than tax d. The tax impact of an dollar of tax base in determined by multiplying by the average tax rate. e. “I can’t afford to earn more because it will throw the higher tax and i will less than i do now after B an taxpayer, known that her dollar of income in the current year will be taxed at 10 percent, D, an taxpayer, knows that his last dollar of current your income will be sued at 25 percent. Which of the following taking into account the above assumptions? a marginal tax rate is greater than b. The value of a $2,000 ITA deduction to D will be less than the same account contributed by B an IRA c. If both parties suffer a $100,000 loss than is fully the impart of the deducible less will be greater of D’1 than d. B will pay 10 percent of for income to the government. e. D will not pay 25 percent of his income to the government Before adjusted gross income can be computed, what following must be a. Income b. Taxable income c. Cross incomes d. a and b e. a and c What policy best explain(s) the progressive rate Which of the follow is not a social objective of the tax laws? A. Fight through unemployment problems of certain disadvantaged groups of citizens through the targeted jobs credit. B. Place more after-tax income into the hands of taxpayers for their disposal. C. Relieve the tax burdens of taxpayers who are 65 or over or are blind. D. Subsidize the cost of a home, and thus encourage home ownership. E. Encourage individuals to provide for there future needs by contributing to their retirement savings accounts.