1. It has often been said that only the rich can benefit from professional tax planning. Based on…

1. It has often been said that only the rich can benefit
from professional tax planning. Based on the information presented in this
chapter, why is this statement at least partially true?

2. State whether each of the following payments is a tax.
Explain your answers.

a. To incorporate his business, Alex pays the state of Texas
a $2,000 incorporation fee.

b. The city paves a road and assesses each property owner on
the road $4,000 for his or her share of the cost.

c. The city of Asheville charges each residence in the city
$10 per month to pick up the trash.

d. Rory pays $450 of income
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1. It has often been said that only the rich can benefit
from professional tax planning. Based on the information presented in this
chapter, why is this statement at least partially true?

2. State whether each of the following payments is a tax.
Explain your answers.

a. To incorporate his business, Alex pays the state of Texas
a $2,000 incorporation fee.

b. The city paves a road and assesses each property owner on
the road $4,000 for his or her share of the cost.

c. The city of Asheville charges each residence in the city
$10 per month to pick up the trash.

d. Rory pays $450 of income tax to the state of California.

e. Lanny is fined $45 for exceeding the speed limit.

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