On Occasion, Congress Has to Enact Legislation That Clarifies the Tax

question 157

True/False

On occasion, Congress has to enact legislation that clarifies the tax law in order to change a result reached by the U.S.Supreme Court.

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Definitions:

Disposable Income

The budgeting capacity for households in terms of saving and spending after income tax commitments.

Saving

The portion of income that is not spent on consumption but rather set aside for future use, often in investments or deposit accounts.

Disposable Income

The net income available to individuals or households after all taxes have been deducted, which can be spent on consumption or savings.

Autonomous Consumption

Represents the amount of consumption that occurs no matter the level of disposable income, indicating basic living expenses.