WGU C237 Taxation I Question and
answers verified to pass 2025 updated
Describe the history of taxation in the US - correct answer ✔unconstitutional
1895
Sources of Tax Law-Legislative Branch - correct answer ✔- Internal
Revenue Code (Top)
- Congressional Committee Reports
Describe the criteria of an equitable tax structure Equity - correct answer ✔Is
it Fair
Simplicity - correct answer ✔understandability
Economy - correct answer ✔minimal compliance and administrative costs
-
Convenience - correct answer ✔no burden of records and compliance
Certainty - correct answer ✔Stability and certainty of amount of taxes
Regressive - correct answer ✔decreases as tax base increases
Proportional - correct answer ✔flat tax
Progressive - correct answer ✔tax increases as tax base increases
, Gross Income - correct answer ✔Total income - Exclusions
Taxable income - correct answer ✔Gross income-Deductions-Exemptions
Income before tax credits - correct answer ✔Taxable income x tax rate
Total tax liability - correct answer ✔Income before tax credits-tax credits
balance due or refund - correct answer ✔total tax liability - Prepayments
Distinguish between various types of taxes - correct answer ✔State Tax
Local Income
Franchise Tax
Wealth transfer tax
Gift tax
Federal Estate tax
Property tax
Federal excise tax - customs
Sales Tax
Identify different types of entities that are subject to taxation in the US -
correct answer ✔-Tax paying entities
Individuals
C Corps
-Flow through Entities
answers verified to pass 2025 updated
Describe the history of taxation in the US - correct answer ✔unconstitutional
1895
Sources of Tax Law-Legislative Branch - correct answer ✔- Internal
Revenue Code (Top)
- Congressional Committee Reports
Describe the criteria of an equitable tax structure Equity - correct answer ✔Is
it Fair
Simplicity - correct answer ✔understandability
Economy - correct answer ✔minimal compliance and administrative costs
-
Convenience - correct answer ✔no burden of records and compliance
Certainty - correct answer ✔Stability and certainty of amount of taxes
Regressive - correct answer ✔decreases as tax base increases
Proportional - correct answer ✔flat tax
Progressive - correct answer ✔tax increases as tax base increases
, Gross Income - correct answer ✔Total income - Exclusions
Taxable income - correct answer ✔Gross income-Deductions-Exemptions
Income before tax credits - correct answer ✔Taxable income x tax rate
Total tax liability - correct answer ✔Income before tax credits-tax credits
balance due or refund - correct answer ✔total tax liability - Prepayments
Distinguish between various types of taxes - correct answer ✔State Tax
Local Income
Franchise Tax
Wealth transfer tax
Gift tax
Federal Estate tax
Property tax
Federal excise tax - customs
Sales Tax
Identify different types of entities that are subject to taxation in the US -
correct answer ✔-Tax paying entities
Individuals
C Corps
-Flow through Entities
