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Tichina Sigmora
on Dec 12, 2024

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The sharp reduction in marginal tax rates during the 1980s

A) reduced the incentive of high-income Americans to work.
B) increased the incentive of high-income Americans to utilize tax shelters.
C) increased the unemployment rate of high-income Americans.
D) increased the visible income of high-income Americans.

Marginal Tax Rates

The rate at which your last dollar of income is taxed, indicating the rate applied to your next dollar of income.

High-Income Americans

Individuals or households that earn significantly above the national median income level in the United States.

Tax Shelters

Investment vehicles or strategies used to reduce taxable income or tax liability, legally or otherwise, often through deductions, exemptions, or deferrals.

  • Understand the consequences of tax policy changes on economic behavior and income visibility.
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Danielle HooeeDec 17, 2024
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