The Rapid Evolution of Corporate Inversions for U

question 51

Multiple Choice

The rapid evolution of corporate inversions for U.S.-based multinationals over the past 20 years has been attributed to all of the following EXCEPT:

• A) lack of foreign tax credits.
• B) relatively high U.S. corporate tax rate.
• C) U.S. lack of global competitiveness.
• D) the worldwide tax principles.

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of additional income that will be taxed.

Marginal Tax Rate

The rate at which the next dollar of taxable income will be taxed.

Total Income

The sum of all earnings received by an individual or entity, including wages, salaries, benefits, and income from investments.

Total Taxes

The cumulative amount of taxes levied by a government on an individual, corporation, or other entity in a specified period, including income, sales, and property taxes.