Politicians protect their wealthy donors regardless of the tax laws, and the ultra-rich know it. The rich are in a better position to take advantage of tax loopholes, deductions and other ways to offset and lower their tax burden regardless of higher tax laws. The wealth gap will continue to increase as tax hikes target the upper middle-class making $400K, which will prevent the middle-class from clawing their way up, protecting the ultra-wealthy from any future competition and allowing them to stay on the top. The wealthy have merged with corrupt government officials, so government works with them to target the middle-class via higher taxes to finance more government spending, resulting in economic tyranny, which benefits corrupt politicians and the ultra-wealthy. All of the answers are correct.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
  1. Explanations why the ultra-wealthy want much higher taxes today include which of the following?

 

  1. Politicians protect their wealthy donors regardless of the tax laws, and the ultra-rich know it.
  2. The rich are in a better position to take advantage of tax loopholes, deductions and other ways to offset and lower their tax burden regardless of higher tax laws.
  3. The wealth gap will continue to increase as tax hikes target the upper middle-class making $400K, which will prevent the middle-class from clawing their way up, protecting the ultra-wealthy from any future competition and allowing them to stay on the top.
  4. The wealthy have merged with corrupt government officials, so government works with them to target the middle-class via higher taxes to finance more government spending, resulting in economic tyranny, which benefits corrupt politicians and the ultra-wealthy.
  5. All of the answers are correct.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Banking and Financial Services
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education