Asked by McGwire Midkiff on Jun 13, 2024
Verified
A decrease of 1% in both your tax exemption and your income tax rate would, on net, ________.
A) make you better off
B) make you worse off
C) make you neither better off nor worse off
D) make you either better or worse off depending on your age
Tax Exemption
A monetary exemption which reduces taxable income, allowing certain income or transactions to be legally exempt from taxation.
Income Tax Rate
The percentage at which an individual or corporation is taxed on their income, which can vary based on income level and jurisdiction.
- Familiarize oneself with the U.S. income tax system's architecture and its repercussions for personal finance decisions.
Verified Answer
PD
payton dorschJun 13, 2024
Final Answer :
A
Explanation :
A decrease in both the tax exemption and income tax rate would result in a lower tax liability, making you better off.
Learning Objectives
- Familiarize oneself with the U.S. income tax system's architecture and its repercussions for personal finance decisions.