A Tax Provision Has Been Discussed That Would Add an Additional

question 97

Multiple Choice

A tax provision has been discussed that would add an additional marginal tax rate of 39% to be applied to an individual's taxable income in excess of $800,000. If this provision were to become law, what overall distributional impact would it have on our current income tax system?

• A) Proportional.
• B) Regressive.
• C) Progressive.
• D) Disproportional.
• E) None of the above.

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Definitions:

Certificate of Limited Partnership

A legal document filed with a state government to establish the existence of a limited partnership.

General Partners

Individuals in a partnership who have joint authority and responsibility for the management of the business, including its debts and liabilities.

Partnership Dissolution

The process of legally ending the existence of a partnership entity, involving the distribution of assets and settling of debts.

Act of Court

A formal decision, decree, or intervention carried out by a judicial entity or court of law.