Describe the difference between tax deferment and tax avoidance.
What will be an ideal response?
Some investors may want to put off paying taxes on a portion of their income, and some investment vehicles do allow tax deferment. Other people want some of their income to be tax-free. Many municipal bonds and government securities are not taxed. Municipal bonds typically do not require the payment of any federal income tax on the income they provide. Some federal government securities do not require the payment of any state or local income tax on their income. Because such securities are currently tax-free, they typically have a slightly lower rate of return than fully taxable investments.
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The nominal interest rate adjusted for actual inflation is the
A. expected real interest rate. B. realized real interest rate. C. after-tax real interest rate. D. yield curve.
A company positioned in the "middle" market introduces a lower-priced product line. What type of line-stretching is this?
A) home stretch B) up-market stretch C) down-market stretch D) maintenance stretch E) two-way stretch
Which of the following accounts will have an amount in the Adjustments columns of the work sheet but probably not in the Trial Balance columns?
a. Common Stock b. Utilities Expense c. Depreciation Expense–Machinery d. Revenue from Services
An important consideration when determining what price to charge in a specific country is the nature of the wholesaling and retailing system in that country
Indicate whether the statement is true or false