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:

Lead Time

The time span between the initiation and completion of a process, such as the ordering of goods and their delivery.

Bill of Material

A comprehensive list detailing all the components, materials, and parts required to manufacture a product, including quantities and specifications.

Inventory

An accounting term referring to the goods and materials held by a business for the purpose of resale or production.

Lot-For-Lot

An ordering system where the exact quantity needed for production is ordered, minimizing inventory holding costs.