Individual Retirement Accounts and 401(k) plans make the current U.S. tax system
A)less like European tax systems than it otherwise would be.
B)more like a payroll tax than it otherwise would be.
C)more like an income tax than it otherwise would be.
D)more like a consumption tax than it otherwise would be.

Question

Quizplus · Accepted Answer

Individual Retirement Accounts and 401(k) plans allow individuals to defer taxes on income that is saved or invested until it is withdrawn, typically in retirement. This feature makes the U.S. tax system more like a consumption tax, as it taxes money when it is spent rather than when it is earned.

Individual Retirement Accounts and 401(k) Plans Make the Current U