Identify a True Statement About the Tax System in the United

question 41

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 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:

Innovators

People or companies that introduce new ideas, products, or methods, often driving change and progress in their industry.

Customer Base

The group of customers who repeatedly purchase the goods or services of a business, creating a foundation for continuous revenue.

Technology Adoption Life Cycle

A sociological model that describes the adoption or acceptance of a new product or innovation, according to the demographic and psychological characteristics of defined adopter groups.

Market Opportunity

A potentially favorable condition in the market that a company can exploit to grow its business or introduce new products.