Which of the following are currently provisions of the U.S.tax system and discourage saving?
A)some forms of capital income are taxed twice
B)if they are large enough,bequests are taxed
C)both a and b
D)neither a nor b

Question

Quizplus · Accepted Answer

Both A and B are currently provisions of the U.S. tax system and they discourage saving. Some forms of capital income, such as dividends and capital gains, are taxed twice- once at the corporate level, and again at the individual level when the income is received by the taxpayer. In addition, if they are large enough, bequests are subject to estate tax which reduces the incentive to save and accumulate wealth.

Which of the Following Are Currently Provisions of the U