The U.S. tax system discourages savings because:
A. taxpayers pay taxes only on their wages.
B. taxpayers pay a federal tax on their consumption spending.
C. taxpayers pay taxes on both their wages and on the earnings from their savings.
D. taxpayers pay a value-added tax on their savings.
Answer:C
The U.S. tax system discourages savings because:
A. taxpayers pay taxes only on their wages. B. taxpayers pay a federal tax on their consumption spending. C. taxpayers pay taxes on both their wages and on the earnings from their savings. D. taxpayers pay a value-added tax on their savings.