Multiple Choice
Article Summary
In November 2017,the House Ways and Means Committee announced a tax reform bill which includes hundreds of changes to the tax code.Overall,the tax plan represents a move in the direction of greater neutrality and global competitiveness.Following are eight of the most important provisions in the tax bill.
1.The corporate tax rate would be reduced to 20 percent.
2.Pass-through business income would be taxed at a maximum rate of 25 percent.
3.Some disincentives to investment would be rolled back.
4.The country would move to a territorial tax system.
5.Many itemized deductions would be eliminated.
6.The estate tax would be repealed.
7.The tax treatment of interest would change.
8.Tax expenditures would be curtailed.
Source: Jared Walczak and Amir El-Sibaie,"Eight Important Changes in the Tax Cuts and Jobs Act," taxfoundation.org,November 2,2017.
-Refer to the Article Summary.A reduction in the corporate tax rate to 20 percent would ________ the return corporations receive from new investments in equipment and factories,and this would ________ aggregate supply.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
Correct Answer:
Verified
Correct Answer:
Verified
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