If Tax Rates Will Be Higher Next Year, Taxpayers Should

question 16

True/False

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:

Self-Handicapping

A cognitive strategy by which people avoid effort in the hopes of keeping potential failure from hurting self-esteem.

Self-Complexity

A concept in psychology that describes the extent to which an individual’s self-concept is comprised of multiple and distinct aspects.

Self-Serving Attributional Bias

The common tendency to attribute one’s successes to personal characteristics and failures to external factors.

Self-Handicapping

A strategy where individuals create obstacles for themselves to provide an excuse for potential failure, thereby protecting self-esteem.