For Many U

question 79

Multiple Choice

For many U.S.individuals and households,replacing the federal income tax with a consumption tax would not make a major change in their tax liability - the amount they would be taxed.Which of the individuals described would be least affected by replacing the income tax with a consumption tax?

• A)A person in the lowest income bracket.This person would pay little or no tax under either system.
• B)A high-income individual who saves 35 percent of this income and uses his savings to purchase stocks and bonds.
• C)A female head of family,with no husband present.
• D)A taxpayer who puts part of her savings into a 401(k)retirement plan and in an Individual Retirement Account.

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Definitions:

Natural Logarithm

The logarithm to the base e, where e is an irrational and transcendental number approximately equal to 2.71828.

Graph

An image that demonstrates the system of interactions or affiliations among two or more entities by employing distinctive visual tools such as dots, lines, and bars.

Logarithm

The power to which a base, often 10 or e, needs to be elevated in order to generate a specific number.

Properties of Logarithms

Rules that simplify the manipulation and solving of logarithmic equations, such as product, quotient, and power rules.