The deductibility of depreciation in calculating taxable income will usually cause the effective tax rate to be lower than the actual tax rate.

Name: The deductibility of depreciation in calculating taxable income will usually cause the effective tax rate to be lower than the actual tax rate.
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Depreciation reduces taxable income, which in turn can lower the effective tax rate. The actual tax rate is typically higher than the effective tax rate due to various tax deductions and credits.

The Deductibility of Depreciation in Calculating Taxable Income Will Usually