Current Tax Laws Have Which of the Following Effects

question 24

Multiple Choice

Current tax laws have which of the following effects?

• A) Favor dividends because there are no capital gains taxes on dividends.
• B) Do not favor capital gains because the tax must be paid as the value of the stock increases,whether or not the stock is sold.
• C) Favor capital gains because the tax does not have to be paid until the stock is sold.
• D) Do not favor dividends or capital gains for most people because different people are in different tax brackets.
• E) Favor dividends since dividends are tax-deductible for the paying corporation whereas retained earnings,which produce capital gains,are not tax-deductible.

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Definitions:

Powerful Group

A social or organizational entity with significant influence, resources, or authority over others or within societal structures.

Coercive Control

A pattern of behaviors used to intimidate, exploit, isolate, and control another person.

Conflict Theory

A social theory that views society as an arena of inequality that generates conflict and social change, emphasizing a materialist view of society, critical of the status quo.

Resentment

A feeling of bitterness or indignation resulting from unfair treatment or past wrongs.