4. At what levels within government can taxes be enacted? The federal government is infamous for taxing individuals and business what other governments should businesses be aware of when setting up a business?

Which is an incorrect statement regarding taxes? *       a. Taxes are necessary for the continued existence of the government.       b. The obligation to pay tax does not rest upon the privilege enjoyed by or the protection afforded to the citizen of the government but upon the necessity of money for the support of the state.       c. There should be personal benefit enjoyed from the government before one is required to pay tax.       d. Taxes should be collected without unnecessary delay but its collection should not be tainted with arbitrariness.       e. Answer not given

6. Which of the following is g erally serving the regulatory function of taxation? a. Real Estate Tax b. Income Tax c. Customs Duties d. Estate Tax 7. Which of the following could not be considered as a purpose of taxation? a. To raise revenue to support the government. b. To distribute the wealth of the nation. c. To check inflation. d. To impose monetary burden to the people. 8. Which of the following business taxes serve more the regulatory functions of taxation? a. Value Added Tax b. Percentage Tax c. Excise Tax d. Documentary Stamp Tax

When a government lowers taxes it is employing ________. A)  fiscal policy B)  monetary policy C)  domestic policy D)  the law of one price