The state of Xanadu assesses a special tax on bass boats. The tax is put in a special fund dedicated to waterway conservation and fish stocking for the state.

_ Claiming personal exemptions allow a head of household to reduce tax liability based on the number of dependents living in the household.

_ The Earned Income Tax Credit provides for the working poor with incomes below thresholds based on family size to receive a refundable tax credit if they file a return.

_ Residents of Anytown have brought a legal case that the property tax system is arbitrary and capricious because it treats owners of similar properties differently, depending on how recently they were assessed. Their case rests on this concept.

_ Random citizen on the street: "Taxes paid by a person should have a clear relationship to services received by that person from the government! Hey, in the private market we get what we pay for."

_ The Jones household had an income of $150,000 in each of the past five years. However, last year, a family member in the household had a serious illness and the household experienced medical expenses in excess of 20 percent of household adjusted gross income. This expense was deductible on Federal income tax. The policy of permitting the deduction rests on this principle.

1- Equity - horizontal

2- Stabilization

3- Administrative simplicity

4- Benefits Principle

5- Ability-to-pay Principle

6- Correspondence Principle

Enter the number of the single BEST criterion/principle illustrated by the statement given. A criterion/principle may be used more than once or not at all.

Answer rating: 100% (QA)

how each statement aligns with the tax principles 1 Claiming personal exemptions allow a head of household to reduce tax liability based on the number ... View the full answer