A Tax Payment Is A Compulsory Payment That Supports The Cost Of Government

Submitted By jkeville
Words: 717
Pages: 3

Jacquelyn Keville
SCH-MGMT 736
CH 1. Homework

Questions & Problems
1. A tax payment is a compulsory payment that supports the cost of government. It differs from a fine or penalty because it is not intended to deter or punish unacceptable behavior. It differs from a user’s fee because the payment of a tax doesn’t entitle the payer to a specific good or service.
2. No, this is more of a penalty or fine because these industries are the ones polluting the river so they should also be responsible for cleaning it up.
3. No, this should be classified as a user’s fee since it is not compulsory.
4. Mr. P bears the incidence of the increased property tax because the value of the property has decreased since he is no longer spending money on maintaining the exterior of the building and landscape.
5. Mr. and Mrs. K should not be exempt from paying this tax. They must pay a personal property tax on their home. Where the tax money goes is the decision of the government. They have the option to send their children to public school, but choose to pay the tuition of a private school instead.
6. The consumer bears the burden of paying money for a product of lesser value. XYZ does not bear the burden because profits remained the same for them.
7. Real property is a better tax base than personal property because personal property is characterized by its mobility, which allows owners to easily hide their assets or move them to another jurisdiction.
8. The local government has the authority to establish different tax rates for different classifications of property. It can be argued that a golf course is used for more “scenic purposes” than as commercial realty, which could also lead to the preferential rate.
9. University K could possibly decline revenues by obtaining property tax abatement. Governments usually grant abatements to lure commercial enterprises into their jurisdiction, thereby creating jobs and benefiting the local economy. A University expansion can argue that it would both create jobs and benefit the economy in order to obtain the tax abatement.
10. Excise tax items are more avoidable than items with sales tax. Items such as cigarettes, hotels, and gas all have excise taxes. By choosing not to utilize these items they are also choosing to not pay the excise tax.
13. Alcohol and cigarettes make a good tax base because people will buy them regardless of what they are priced as. As the book points out, “New York levies a $4.35 excise tax on one pack of cigarettes, and Alaska levies $12.80 excise tax per gallon of distilled liquor.”
14. I believe that the federal income tax would