High marginal tax rates have been offset by __________.

Question

Quizplus · Accepted Answer

High marginal tax rates have been offset by various mechanisms such as deductions, exemptions, exclusions, and shelters. These tools are designed to reduce the amount of income subject to tax or lower the tax rate applied to the income. Deductions, exemptions, and exclusions all reduce taxable income, while shelters are investment strategies or legal arrangements designed to minimize tax liabilities. Therefore, all of the above options are true when it comes to offsetting high marginal tax rates.

High Marginal Tax Rates Have Been Offset by __________