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Wealth includes all incomes that flow to a taxpayer.
A) True
B) False

User TorbenJ
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1 Answer

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Final answer:

Wealth does not include all incomes; rather, it represents the accumulation of assets owned by a taxpayer, while income is the regular flow of money received.

Step-by-step explanation:

The statement 'Wealth includes all incomes that flow to a taxpayer' is False. While income is a flow of money that a taxpayer receives on a regular basis, such as monthly or annual earnings from employment or investments, wealth is the accumulation of valuable assets that a taxpayer owns. Wealth includes the sum value of all assets like money in bank accounts, financial investments, a pension fund, and the value of a home, minus any debts such as mortgages and credit cards. Simply put, income is what you earn, whereas wealth is what you accumulate and own.

User Huibert Gill
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