The Many Loopholes Present in the Federal Income Tax System

question 117

Multiple Choice

The many loopholes present in the federal income tax system prior to the 1986 tax reform caused all of the following except

• A)Greater vertical inequity by making the income tax more regressive.
• B)Greater horizontal inequity since the loopholes were more accessible to some taxpayers than others.
• C)The system to be more progressive since loopholes favored those at lower income levels.