Steve Forbes Has Run for President Twice on a Program

question 47

Essay

Steve Forbes has run for president twice on a program of a "flat tax." Under a flat tax,there would be only one tax bracket for the federal income tax and most tax deductions and tax exemptions would be eliminated.Suppose that Forbes wins the 2012 presidential election.What would be the likely impact on the market for municipal bonds?

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Definitions:

Assets

Resources owned or controlled by a business or individual, expected to bring future economic benefits.

Accounting Equation

The foundational principle of accounting representing the relationship between a company’s assets, liabilities, and equity: Assets = Liabilities + Equity.

Vehicle

A means of transportation, such as a car, truck, motorcycle, or bicycle, that facilitates the movement of people or goods from one place to another.

Credit

Credit refers to the trust which allows one party to provide resources to another party wherein the second party does not reimburse the first party immediately but promises either to repay or return those resources at a later date.