1.1 Rob Norton, of eCompany Now and Fortune magazines, notes in the article quoted below that corporate taxes
are among the least efficient and least ....... of taxes.
(A) avoidable (B) defeatable (C) defensible (D) reprehensible
2.2 The tax is popular with the man ......., who believes, incorrectly, that it is paid by corporations.
(A) in the shop (B) in the street (C) on the block (D) on the job
3.3 The federal corporate income tax applies only to some businesses — those chartered as corporations — and
not to partnerships or ....... proprietorships.
(A) simple (B) single (C) sole (D) strict
4.4 .The federal tax is levied at three different rates on different ....... of income: 15 percent on taxable income
under $50,000; 25 percent on income between $50,000 and $75,000; and 34 percent on income above that.
(A) brackets (B) components (C) portions (D) segments
5.5 .A good reason that state and local corporate income taxes remain low is that corporations could easily .......
out of states that imposed unusually high taxes.
(A) reinstate (B) relegate (C) relocate (D) replace
6.6 Except for emergency taxes in wartime, corporate profits were first taxed in 1909, when Congress ....... a 1
percent tax on corporation income.
(A) decided (B) enacted (C) proscribed (D) retracted
7.7 The Tax Reform Act of 1986 was designed to increase the share of federal revenues collected via the
corporate income tax and to decrease the share from the ....... income tax.
(A) individual (B) personnel (C) private (D) single
8.8 While the top corporate tax rate was cut, deductions for capital expenditures were severely ......., and as a
result the effective tax rate for many corporations rose.
(A) amended (B) curtailed (C) examined (D) extended
9.9 The central problem with the corporate income tax from an economic point of view is that, ultimately, only .......
can pay taxes.
(A) entities (B) companies (C) people (D) some
10.10 As early as the 17th century, Sir William Petty, one of the ....... of modern economics, argued that a tax on the
production and sale of commodities would eventually be shifted by producers to consumers, who would pay it
in the form of higher prices.
(A) planners (B) precursors (C) predecessors (D) progenitors