Which of the Following Taxpayers Will Benefit Most in Terms

question 46

Multiple Choice

Which of the following taxpayers will benefit most in terms of dollars saved as a result of tax planning to reduce taxes?

• A)An individual taxpayer who has a marginal tax rate of 32 percent.
• B)An individual taxpayer who has an average tax rate of 32 percent.
• C)An individual taxpayer who has a marginal tax rate of 24 percent.
• D)The taxpayers in a and b will benefit equally.
• E)None of the above.

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Definitions:

Forgery

The illegal act of creating, altering, or imitating objects, documents, or signatures with the intention to deceive.

Federal Common Law

Federal common law refers to laws developed by Federal courts in the absence of detailed statutory guidance, often based on precedent or principles derived from the U.S. Constitution.

Vicariously Liable

The legal principle where one party is held liable for the actions of another party, such as an employer for the acts of its employees.

Mental Fault

A legal concept referring to the intentional or reckless state of mind of a defendant necessary for certain offenses or torts.