Individual Retirement Accounts and 401(k) plans make the current U.S. tax system
A)more like a consumption tax and so more like the tax system of many European countries.
B)more like a consumption tax and so less like the tax system of many European countries.
C)less like a consumption tax and so more like the tax system of many European countries.
D)less like a consumption tax and so less like the tax system of many European countries.

Question

Quizplus · Accepted Answer

Individual Retirement Accounts and 401(k) plans allow individuals to save for retirement on a tax-deferred basis. This means that the money they contribute to these accounts is not taxed until they withdraw it in retirement. This makes the current U.S. tax system more like a consumption tax, which is a tax on spending, and less like a income tax, which is a tax on earnings.

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