Which of the Following Taxpayers Will Benefit Most in Terms

question 42

Multiple Choice

Which of the following taxpayers will benefit most in terms of dollars saved as a result of tax planning to reduce taxes?

• A) An individual taxpayer who has a marginal tax rate of 28 percent.
• B) An individual taxpayer who has an average tax rate of 28 percent.
• C) An individual taxpayer who has a marginal tax rate of 15 percent.
• D) The taxpayers in a. and b. will benefit equally.
• E) None of the above.

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Definitions:

Typhus

A group of infectious diseases caused by Rickettsia bacteria, transmitted by lice, fleas, or mites, characterized by severe fever, headache, and rash.

Malaria

A serious disease caused by Plasmodium parasites, transmitted to humans through the bite of infected Anopheles mosquitoes, characterized by fever, chills, and flu-like illness.

Sea Anemone

A marine animal with a polyp attached to the sea bottom, displaying a ring of tentacles around a central mouth.

Brittle Star

A type of echinoderm with a central disc and five long, slender, flexible arms, known for their ability to regenerate limbs and move by wriggling their arms.