Q:

Which of the following statements about taxes is false?Three taxes are deducted from your paycheck: federal income tax, state income tax (if applicable) and FICA.Not all types of income are taxed; while earned income and passive income are taxed, portfolio income is not taxed.The primary taxes on consumption are sales tax and excise tax.Taxes on wealth and property include property tax, taxes on inheritance, estate taxes and gift taxes.

Accepted Solution

A:
Answer:Not all types of income are taxed; while earned income and passive income are taxed, portfolio income is not taxed.Step-by-step explanation:portfolio income refers to income generated by selling an investment tool at a higher price than that which was paid for. As such it is taxable which makes the statement;Not all types of income are taxed; while earned income and passive income are taxed, portfolio income is not taxed, FalseThe following statements about taxes are True;Three taxes are deducted from your paycheck: federal income tax, state income tax (if applicable) and FICA.The primary taxes on consumption are sales tax and excise tax.Taxes on wealth and property include property tax, taxes on inheritance, estate taxes and gift taxes.