Which one of the following is true? Group of answer choices The US tax system is voluntary because taxpayers determine the correct amount of their income and tax rather than the US government determining their income and tax for them. The US tax system is voluntary because taxpayers can choose or not choose to file their federal income tax returns without violating the federal law. The US federal income tax system for individiuals is a territorial tax system The US federal invididual tax rate is a flat (proportional) tax rate, not a progressive tax rate
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Eduard S.
Individuals and firms pay out a significant portion of their income as taxes, so taxes are important in both personal and corporate decision. Our tax system is Progressive. Individuals: Individuals pay taxes on wages, investment income, and on the profit of proprietorship and partnership. Taxable income is defined as gross income less a set of deductions. In 2018, the personal exemption is taxpayers and their dependents at zero. A capital gains (loss) is the profit (loss) from the side of a capital assets for more (less) than its purchase price. In 2018, for most taxpayers a capital gains is taxed at a maximum rate at 15%, while,a capital gains is taxed as ordinary income[for high-income taxpayers the tax rate on long-term capital gains 1,2010] income consist of dividends and interest income except interest on state and local government debt, which is exempt from federal taxes is taxed on while dividends are taxed at the as long-term . Generally, interest payments are not tax deductible. For individuals except for interest an within certain limits.
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