Tax loopholes
A)reduce the progressivity of the federal income tax.
B)encourage particular patterns of behavior.
C)include exemption of interest earned on municipal bonds.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Tax loopholes can have several effects, including reducing the progressivity of the federal income tax, encouraging certain types of behavior (such as investment in municipal bonds), and allowing individuals or businesses to legally avoid paying their fair share of taxes. Therefore, all of the choices are correct.

Tax Loopholes