'The U.S. tax code gives preferential treatment to investors in municipal bonds. This is an example of
A)a tax loophole.
B)tax evasion.
C)an administrative burden.
D)tax enforcement.

Question

Quizplus · Accepted Answer

The preferential treatment given to investors in municipal bonds is a tax loophole. This means it is a legal way to reduce one's tax liability through taking advantage of specific provisions in the tax code.

'The US Tax Code Gives Preferential Treatment to Investors in Municipal