Author Question: To encourage low- to moderate-income workers to save for retirement, a tax credit called the Saver's ... (Read 46 times)

EY67 · **on:** Jul 11, 2018

To encourage low- to moderate-income workers to save for retirement, a tax credit called the Saver's Credit is available. Which statement about tax credits and tax deductions is true?

A) Tax deductions are more favorable than tax credit for most taxpayers.
B) Tax credits reduce taxes owed on a dollar-for-dollar basis.
C) Tax credits reduce taxable income.
D) Tax deductions reduce taxes owed on a dollar-for-dollar basis.

Question 2

Which statement is true with regard to problems and issues with tax-deferred retirement plans in the United States?

A) Inadequate participation in employer-sponsored retirement plans can create economic insecurity for retired employees.
B) Retirement benefits for women are higher than retirement benefits for men, reflecting the higher wages women are paid.
C) Employees do not invest sufficient amounts in the common stock issued by the companies where they work.
D) Pension benefits are too often indexed for inflation, burdening employers with high pension costs.