The Federal Government's Use of Net Income Versus Taxable Income

question 78

Multiple Choice

The Federal Government's use of net income versus taxable income ensures

• A)a progressive tax system.
• B)lower income individuals benefit the most.
• C)single parents benefit more.
• D)all taxpayers are treated equitably.

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Definitions:

Income

Money received, especially on a regular basis, through work, investments, business, etc., for goods or services provided.

Realized

Pertains to the conversion of an asset into cash or when a gain or loss is acknowledged upon selling or trading an asset.

Form

A document used to collect or provide information, often used for administrative purposes or in formal transactions, like tax forms.

Income

Payment received, often on a consistent schedule, for employment or from investment profits.