Which of the following is true about labor and capital income taxation?

An increase in the income tax rate _____ disposable income and _____ consumption spending. Answer Show more An increase in the income tax rate _____ disposable income and _____ consumption spending. Answer decreases decreases increases decreases increases increases decreases increases Which of the following is true about labor and capital income taxation? Answer Capital income (corporate profits dividends and capital gains) is taxed at the same rate as labor income. A change in capital income tax rates does not change potential GDP. An increase in capital income tax rates leads to a decrease in investment. Its better for the economy to tax capital income rather than labor income. All of the above are true. Most of U.S. Federal government debt is held by Answer a. China b. Oil producing nations c. Japan d. United Kingdom e. U.S. entities Show less

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