Test Bank For South-Western Federal Taxation 2026 Individual Income Taxes 48th Edition By James Annette Nellen Mark Persellin Sharon Andrew Brad (All Chapters, 100% Original Verified, A+ Grade) (521pages)

Chapter 01: An Introduction to Taxation and Understanding the Federal Tax Law Powered by Cognero Page 1 True / False 1. Because the law is complicated, most individual taxpayers are not able to complete their Federal income tax returns without outside assistance. a. True b. False 2. The ratification of the Sixteenth Amendment to the U.S. Constitution was necessary to validate the Federal income tax on corporations. a. True b. False 3. Before the Sixteenth Amendment to the Constitution was ratified, there was no valid Federal income tax on individuals. a. True b. False 4. The first income tax on individuals (after the ratification of the Sixteenth Amendment to the Constitution) levied tax rates from a low of 1% to a high of 6%. a. True b. False 5. The Federal income tax on individuals generates more revenue than the Federal income tax on corporations. a. True b. False 6. The pay-as-you-go feature of the Federal income tax on individuals conforms to Adam Smith’s canon (principle) of certainty. a. True b. False 7. The Medicare component of the FICA tax (1.45% on wages) is progressive because the tax due increases as wages increase. a. True b. False 8. The Federal estat