Highlight your answers in some manner (different color, “bold” etc) so I can pick them out easily… (I’m still old !)

  1. According to Hidden Taxes You Pay Everyday, how much federal tax is on a typical 6-pack of beer?
  1. Assume that you have a “Marginal Tax Rate” of 28%. How much tax are you liable for if you receive a cash gift of $1,000 from your personal finance instructor (don’t hold your breath). (If you need more info – use the internet).
  1. Read Income Tax Basics & 2018Tax Tables link. Assume that I had a “Gross Income” of exactly $100,000. Calculate my taxes two different ways assuming:

a) I am single. How much tax do I owefor 2018 ?

b) I am married – filing jointly. How much tax do I owe for 2018 ?

3a______

3b______

  1. The Self Employment Tax is divided into 2 parts. What are the names …AND …percentages of each of the two parts?
  1. What is one of the drawbacks of “working off the books”.
  1. Name FOUR different types of taxes.
  1. What is the difference between a “progressive” tax (like the income tax) and a :”regressive” Tax (like the payroll (FICA) taxes on your paycheck).
  1. Which is more valuable to a taxpayer, a tax deduction or a tax credit. Explain.
  1. Define the terms “adjusted gross income”… AND …“exemption”.
  1. On 9/01/2010 I bought ONE share of stock paying $119,000 (Berkshire-Hathaway … Warren Buffets company). I sold that ONE share of stock on 8/01/2016 for $224,000. How much tax do I owe for this “gain”. (Note: I am in the 35% marginal tax bracket).
  1. What are THREEof the 5 types of IRS audits.
  1. What is “Tax Freedom Day” … AND … in 2017what date is “Tax Freedom Day” ?
  1. Look over both of the U.S. Government … links. What percentage of government “revenue” comes from Payroll AND Income Taxes … AND … which of the TWO largest “programs” represents about 49% of the governments “expenses” ?
  1. Check the “U.S. Debt Clock”. How much is the “debt per taxpayer” … AND … the “debt per citizen” (which includes all children AND old folk AND the unemployed).
  1. What is the difference between “Tax Avoidance” and “Tax Evasion” ?
  1. In the article “Audit Flags”what are THREE things that may trigger an IRS audit?
  1. When it comes to calculating capital gains, what is meant by the term “basis” ?
  1. Bernie Sanders recently touted the benefit programs in some Scandinavian countries (Sweden, Norway, Denmark). What is the “Personal Income Tax Rate” of the United States … compared to … Sweden?
  1. What is a “Roth IRA” … AND … why is it even mentioned in this discussion about taxes and tax planning ?
  1. How would you define the term “Marginal Tax Rate” … AND … what is YOUR marginal tax rate?

Personal Financial Portfolio … (5 points).

Since the IRS expects it's own "worksheet" from you no later than April 15, l I have not included a portfolio worksheet for this particular chapter.

INSTEAD … in ONE paragraph tell me which tax system you prefer … AND WHY.

Your choices are: the current “Progressive” system; a “Flat” tax; a “National Sales Tax” or a “Value Added Tax”… (“none of the above” is NOT an option).