Identify a True Statement About the Tax System in the United

question 6

Multiple Choice

Identify a true statement about the tax system in the United States.

• A) The Tax Reform Act of 1986 was intended to lower taxes and simplify the tax code and it did just that for most taxpayers.
• B) A few years after the Tax Reform Act of 1986 was passed, large federal deficits forced Congress to cut spending.
• C) Those affected by the Tax Reform Act of 1986 lobbied Congress to legislate special exceptions so that the full impact of the tax rate increase would be felt by the wealthiest Americans.
• D) Tax cuts occurred under the administrations of both George H. W. Bush (1989-1993) and Bill Clinton (1993-2001).
• E) The tax rate for the highest income bracket decreased from 39.6 percent in 1986 to 28 percent in 1993.

---

Definitions:

Scatterplot

A graph that displays data points based on two variables, showcasing any potential relationship or pattern between them.

Association

A relationship or connection between two or more entities, variables, or concepts, indicating that they may affect or be related to each other in some way.

Exponential

Referring to a mathematical function or growth characterized by an increasing rate as the value of the variable increases.

Quadratic

Relates to an algebraic expression of the second degree, typically in the form of \(ax^2 + bx + c = 0\), where \(a\), \(b\), and \(c\) are constants.