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Democrats Agreed to Support Loopholes That Favored the Rich in Return

Question 50

Multiple Choice

Democrats agreed to support loopholes that favored the rich in return for high marginal rates,because they feared that a combination of no loopholes and high marginal rates would


A) hurt the middle class more than it would hurt the wealthy by denying them Schedule C deductions.
B) discourage foreign investment and raise the cost of raw materials.
C) encourage foreign investment in U.S.industry,thereby hurting the economy indirectly.
D) seriously affect productivity by raising the cost of raw materials and labor.
E) hurt the economy by discouraging people and businesses from saving and investing.

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