us federal income tax is progressive by law, but which best explains why wealthy individuals can often pay…
us federal income tax is progressive by law, but which best explains why wealthy individuals can often pay far less in taxes than the top tax rate?\no high - income earners can fight in court for the right to a reduced rate.\no high - income earners reduce their tax rates through numerous deductions.\no high - income earners use tax laws to their advantage to reduce their tax rates.\no high - income earners always place their assets overseas to lower their tax rates.
Answer
Brief Explanations:
High - income earners often use various legal provisions in tax laws, such as deductions, credits, and loopholes, to reduce their effective tax rate. Fighting in court for a reduced rate is not the most common way. Placing assets overseas is not always the case and is also subject to reporting and other regulations. Deductions are part of using tax laws to one's advantage.
Answer:
High - income earners use tax laws to their advantage to reduce their tax rates.