Which of the Following Concerning Implicit Taxes and Clienteles Is

question 31

Multiple Choice

Which of the following concerning implicit taxes and clienteles is not true?

• A)Market forces drive down the BTROR of tax-favored assets.
• B)The reduced return of tax-favored assets is an implicit tax.
• C)Investors whose tax rate exceeds that of the marginal investor can reap some benefit through the clientele effect.
• D)Marginal investors will always benefit from the implicit tax on tax-favored investments.

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Definitions:

Supreme Court

The highest judicial body in a country, typically tasked with interpreting the constitution and adjudicating on matters of national importance.

Poll Taxes

Poll Taxes are taxes levied as a fixed sum on every liable individual, historically used as a means of disenfranchising voters, particularly African Americans in the United States.

Enfranchised African Americans

African Americans who were granted the right to vote, especially referring to the period following the Civil War.

Political Power

The ability or capacity of a person or group to influence the actions, beliefs, or conduct of others within a political framework.