Which of the Following Statements About Implicit and Explicit Taxes

question 64

Multiple Choice

Which of the following statements about implicit and explicit taxes is false?

• A) The amount of implicit tax on an investment depends on the owner's marginal tax rate.
• B) The taxpayer pays an explicit tax to the taxing jurisdiction.
• C) An investment yielding ordinary income taxed at the regular tax rates should not have an implicit tax.
• D) None of these choices are false.

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