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If Tax Rates Will Be Higher Next Year, Taxpayers Should

question 16

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If tax rates will be higher next year, taxpayers should defer their income to next year regardless of their after-tax rate of return.


Definitions:

Signal-detection Threshold

The sensory level at which a stimulus is detected 50% of the time, highlighting the ability to identify under conditions of uncertainty.

Psychophysics

The scientific study of the relationship between stimuli and the sensations and perceptions they produce.

Vision Scientist

A researcher who studies the physiology of vision, visual processing, and perception.

Signal-detection

a psychological theory that aims to quantify the ability to discern between information-bearing patterns and random patterns that distract from the information.

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