Final answer:
To be 'ordinary' under IRC § 162, an expenditure does not need to be incurred during most taxable years; this is a false statement. The necessary and proper clause expanded and did not limit government powers. Colonists were concerned with taxation without representation, which is a true statement.
Step-by-step explanation:
To answer the question regarding IRC § 162 and ordinary expenses, it is false that an expenditure must be incurred during most taxable years of the taxpayer to be considered ordinary. The term 'ordinary' in this context relates more to the common and accepted nature of the expense in the taxpayer's trade or business rather than its frequency.
Addressing Exercise 9.3.1, the necessary and proper clause is false; it has generally been interpreted to expand rather than limit the powers of the national government.
Regarding Exercise 7.3.1, the statement that colonists did not object to the principle of taxation but how the tax money would be applied is true. They were particularly concerned with the lack of representation in the decision-making process regarding taxation.
For the series of True or False questions:
- Federal spending has indeed grown substantially in recent decades, making the statement true.
- By world standards, the U.S. government actually controls a smaller portion of the U.S. economy, which makes statement b false.
- It is true that a majority of the federal government's revenue is collected through personal income taxes.
- Education spending is actually larger at the state and local level compared to the federal level.
- State and local government spending has indeed risen in recent decades.
- Defense spending is not higher now than at certain points in the past, such as during World War II.
- The share of the economy going to federal taxes has varied and has not increased substantially over time, making statement g false.
- Foreign aid constitutes a small portion of federal spending, less than 1%, so statement h is false.
- Regarding budget deficits, surpluses were indeed present from 1998-2001, which makes statement i false.