Why Is Almost Half of All Personal Income Not Taxed

question 86

Multiple Choice

Why is almost half of all personal income not taxed?

• A)because federal tax rates only apply to adjusted gross income
• B)because federal tax rates only apply to taxable income
• C)because federal tax rates only apply to tax expenditures
• D)because half of all income comes from capital gains,which are not taxed

---

Definitions:

Drives

Internal states of tension or arousal that motivate behavior towards fulfilling specific needs or goals.

Concept

An abstract idea or a mental symbol typically associated with a comprehensive set of phenomena or characteristics.

Attributes

Characteristics or properties that describe and identify different entities, objects, or individuals.

Attribution

The process by which individuals explain the causes of behavior and events, often attributing them to internal dispositions or external situations.