Asked by
Tichina Sigmora
on Dec 12, 2024Verified
The sharp reduction in marginal tax rates during the 1980s
A) reduced the incentive of high-income Americans to work.
B) increased the incentive of high-income Americans to utilize tax shelters.
C) increased the unemployment rate of high-income Americans.
D) increased the visible income of high-income Americans.
Marginal Tax Rates
The rate at which your last dollar of income is taxed, indicating the rate applied to your next dollar of income.
High-Income Americans
Individuals or households that earn significantly above the national median income level in the United States.
Tax Shelters
Investment vehicles or strategies used to reduce taxable income or tax liability, legally or otherwise, often through deductions, exemptions, or deferrals.
- Understand the consequences of tax policy changes on economic behavior and income visibility.
Verified Answer
DH
Learning Objectives
- Understand the consequences of tax policy changes on economic behavior and income visibility.