Which of the following is correct?
A)No forms of capital income are taxed twice.
B)The tax code cannot be rewritten to provide greater incentive to save.
C)Means-tested benefits increase the incentive to save.
D)There is a correlation between national savings rates and measures of economic well-being.

Question

Quizplus · Accepted Answer

There have been studies that suggest a positive correlation between national savings rates and measures of economic well-being, indicating that higher rates of saving can lead to greater economic growth and prosperity. Option A is incorrect because sometimes, some forms of capital income can be taxed twice. Option B is incorrect as the tax code is regularly rewritten to provide greater incentives to save. Option C is also incorrect as means-tested benefits may discourage saving for individuals who are close to the threshold of eligibility.

Which of the Following Is Correct