One should keep in mind that when it comes to tax advantages, ________ is/are better than ________.

Question

Quizplus · Accepted Answer

Capital gains are typically taxed at a lower rate than ordinary income, making them a better tax advantage. Tax deferral (as in option B) can also be beneficial, but it ultimately depends on an individual's specific financial situation. Tax shelters (as in option D) can be illegal or risky, and marginal rates (as in option E) only refer to the different rates at which different income levels are taxed - they do not necessarily provide a tax advantage in and of themselves.

One Should Keep in Mind That When It Comes to Tax