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Which of the Following Statements About Implicit and Explicit Taxes

Question 67

Multiple Choice

Which of the following statements about implicit and explicit taxes is false?


A) The amount of implicit tax on an investment depends on the owner's marginal tax rate.
B) The taxpayer pays an explicit tax to the taxing jurisdiction.
C) An investment yielding ordinary income taxed at the regular tax rates should not have an implicit tax.
D) None of the above is false.

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