Although the primary purpose of a tax system is to raise revenue, Congress uses the federal tax system for other purposes as well. Describe the other ways in which Congress uses the federal tax system. Be specific.
What will be an ideal response?
In addition to the general objective of raising revenue, Congress uses the federal tax system to encourage certain behavior and discourage other behavior. The charitable contribution deduction is intended to encourage taxpayers to support the initiatives of charitable organizations (social objective) whereas deductions for retirement contributions are intended to encourage retirement savings (social objective). Taxes are also often used to encourage investment and stimulate the economy. Likewise, taxes are also used to discourage certain less desirable taxpayer behavior. For example, "sin taxes" impose relatively high surcharges on alcohol and tobacco products to discourage their use.
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a. ethical fiduciary responsibility b. procedural justice c. servant leadership d. corporate social responsibility
Metric symbols do not change in the plural and are never followed by ______________
a. an equation b. another number c. a period d. another symbol
When old equipment is traded in for a new equipment, the difference between the list price and the trade in allowance is called boot
Indicate whether the statement is true or false
What basis of accounting is used by government funds?
a. Modified accrual b. Accrual c. Cash d. Semi accrual