During 1960-1980, Those with the Highest Incomes Confronted Federal Marginal

question 83

Multiple Choice

During 1960-1980, those with the highest incomes confronted federal marginal tax rates between 70 and 90 percent. Since 1986, the highest federal income tax rate has been less than 40 percent. Since 1986, the share of the personal income tax collected from the top one-half of one percent of earners has been

• A) substantially lower than during the 1960s and 1970s.
• B) only slightly lower than during the 1960s and 1970s.
• C) virtually the same as during the 1960s and 1970s.
• D) higher than during the 1960s and 1970s.

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Definitions:

Residual Value

is the estimated amount that an entity would currently obtain from disposing of the asset, after deducting the estimated costs of disposal, at the end of its useful life.

Asset's Economic Life

The period over which an asset is expected to be economically useful to the owner.

Inception Date

The date on which an agreement, policy, or financial instrument becomes effective or is entered into.

Fair Value

A projected price for an asset or liability that could be transferred between agreeable, well-informed participants in a transaction that is free from any special relationship.