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.

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Definitions:

Interviewees

Individuals who are being interviewed for a specific role or purpose.

Apparent Authority

The appearance or assumption of authority based on the actions or statements of the principal, leading others to believe that a representative has authority to act.

Ordinary Maintenance

Routine or regular upkeep necessary to maintain the condition or functionality of property or equipment.

Personal Liability

Refers to an individual's legal responsibility for debts or actions, potentially affecting their personal assets.