Which of the Following Statements About Implicit and Explicit Taxes

question 60

Multiple Choice

Which of the following statements about implicit and explicit taxes is false?

• A) The taxpayer pays an explicit tax to the taxing jurisdiction.
• B) An investment yielding ordinary income taxed at the regular tax rates should not have an implicit tax.
• C) Any implicit tax on investment income is always more than the explicit tax on the income.
• D) An implicit tax reduces the before-tax yield on an investment.

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Definitions:

Contingent Statement

In the Logic of Statements means a grammatically correct expression that turns out to be true under at least one possible assignment of truth values to its component simple statements and false under another possible assignment of truth values to its component simple statements.

Truth Values

The attribution of truth or falsity to propositions or statements, which in classical logic are typically denoted as true or false.

Translation

The process of translating words or text from one language into another.

Declarative Logic

A branch of logic concerned with statements that declare facts about the world, which can be either true or false.