Most people have heard that the rich get richer because they are not taxed

Question # 00179000 Posted By: solutionshere Updated on: 01/23/2016 12:42 PM Due on: 02/22/2016
Subject Accounting Topic Accounting Tutorials:
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elaborate on the following questions with citation.

1. Most people have heard that the rich get richer because they are not taxed as much as other people due to the deductions available to them. Given what you have learned about deductions, do you believe that a multimillionaire can minimize his or her taxes to effectively pay less than a person making 60,000 a year? Why or why not?

2. Congress uses the Tax Code to influence our behavior. Examples include deductions for mortgage interest and property taxes to steer people to home ownership instead of renting. Tax credits for purchasing products that use alternative energy are another incentive. Likewise, deductions for charitable contributions encourage charitable donations. Is this a good (i.e., proper) way for Congress to achieve economic objectives? Can you identify other tax deductions or tax credits that encourage particular behaviors?

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  1. Tutorial # 00173779 Posted By: solutionshere Posted on: 01/23/2016 12:42 PM
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