Question

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?

High-income earners can fight in court for the right to a reduced rate.
High-income earners reduce their tax rates through numerous deductions.
High-income earners use tax laws to their advantage to reduce their tax rates.
High-income earners always place their assets overseas to lower their tax rates.
Mark this and return

Answer 1

High-income earners use tax laws to their advantage to reduce their tax rates.