Which Statement Regarding Transfer Taxation Is NOT True

question 2

Multiple Choice

Which statement regarding transfer taxation is NOT true?

• A) The gift tax and the estate tax are two types of a transfer tax.
• B) Any gift above $14,000 is subject to gift tax.
• C) The estate tax currently exempts the first $5.43 million of your gifts and estate.
• D) The United States raises about 0.6 percent of its revenues from transfer taxes.

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Definitions:

Accounting Profits

The net income of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues, according to standard accounting practices.

Perfectly Competitive

A market structure characterized by a large number of small firms, identical products, and free entry and exit, leading to price taking behavior.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to enter and exit the market, and no economic forces are pushing for change.

Efficient Scale

The level of production at which a company or industry can produce its products at the lowest average cost, optimizing resource use.