The U.S. income tax
A)discourages saving.
B)encourages saving.
C)has no effect on saving.
D)will reduce the administrative burden of taxation.

Name: The U.S. income tax A)discourages saving. B)encourages saving. C)has no effect on saving. D)will reduce the administrative burden of taxation.
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Question

Quizplus · Accepted Answer

The U.S. income tax discourages saving because it taxes the interest income that results from saving, thereby reducing the after-tax return on savings.

The U.S. Income Tax