An Astute Tax Student Once Summarized That Many of the Tax

question 90

Essay

An astute tax student once summarized that many of the tax planning strategies merely make use of the variation of taxation across different dimensions. Explain why this is true. Be specific.

---

Definitions:

Production Possibility Frontier

A graph that shows all the maximum production possibilities of two or more products based on certain inputs.

Bowed Out

A phrase indicating withdrawal or retreat from a competition, situation, or commitment.

Increasing Opportunity Costs

The economic concept that as production of a good increases, the opportunity cost of producing an additional unit of that good also increases.

Production Possibilities Schedule

A graphical representation that shows the different combinations of two goods or services that can be produced within a given time period, provided that available resources and technology are static.