Which of the following is needed to implement the income shifting strategy?
A) taxpayers with varying tax rates
B) decreasing tax rates
C) increasing tax rates
D) unrelated taxpayers
E) None of these

Question

Quizplus · Accepted Answer

The income shifting strategy involves shifting income from a taxpayer with a high tax rate to one with a lower tax rate, in order to reduce overall taxes paid. Therefore, taxpayers with varying tax rates are needed to implement this strategy.

Which of the Following Is Needed to Implement the Income