Which of the Following Was One of the Main Rules

question 32

Multiple Choice

Which of the following was one of the main rules in the 1990 "Budget Enforcement Act"?

• A)flat tax rate
• B)PAYGO rule
• C)indexation of income tax brackets
• D)consumption tax
• E) none of the above

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Definitions:

American Opportunity Tax Credit

A credit for qualified education expenses paid for an eligible student for the first four years of higher education, with a portion potentially refundable.

AGI

Adjusted Gross Income, which is total income adjusted by certain allowable deductions, serving as the base for calculating taxable income.

Qualifying Expenses

Expenses that are determined to be necessary and deductible under tax law for various benefits like education savings accounts or business expenses.

Child and Dependent

Terms used in tax law to refer to individuals for whom the taxpayer provides more than half of financial support, qualifying the taxpayer for certain deductions.