Us federal income tax is progressive by law, but which best explains why is it sometimes regressive in practice?

2 answers:

3 0

I believe the answer is: High-income earners use tax laws to their advantage to reduce their tax rates

High income earners tend to possess financial knowledge or ability to allow experts who understand the full scope of taxation laws and how to recorded the transactions in a way that make it eligible for tax deduction. This makes a lot of high income earners manage to avoid paying taxes even if they manage to obtain a lot of profit.

NikAS [45]2 years ago

3 0

"High-income earners use tax laws to their advantage to reduce their tax rates" is what best explains why the US federal income tax is progressive by law, but it is s<span>ometimes regressive in practice. I hope that this is the answer that you were looking for and the answer has actually come to your great help.</span>

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kirill115 [55]

Answer:

B. it cannot adjust the quantity of fixed inputs

Explanation:

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Fixed costs have no impact on a firm's short run decisions

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GalinKa [24]

Answer:

e. all of the above.

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vagabundo [1.1K]

Answer:

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Solving for rates what annual rate of return is earned on a $2,800 investment when it grows to $6,100 in eleven years?

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To solve use equation:
FVn = 6100 - investment amount after 11 years
PV = 2800 - initial investment amount
n = number of years

Fvn = Pv(1+i)^n
6100 = 2800(1+i)^11
(1+i)^11 = 6100/2800
(1+1)^11 = 2.17857143
i = (2.17857143)^(1/11)-1
i = 0.07335
i = 0.07335 x 100
i = 7.34%

The annual rate of return is 7.34%

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