Tax loopholes increase the progressivity of the federal income tax.

Question

Quizplus · Accepted Answer

Tax loopholes allow some individuals or companies to avoid paying taxes or reduce their tax liability, which reduces the progressivity of the federal income tax system. It allows those who can take advantage of the loopholes to pay a smaller portion of their income in taxes compared to those who cannot. Therefore, tax loopholes decrease the progressivity of the federal income tax.

Tax Loopholes Increase the Progressivity of the Federal Income Tax