If half the interest earned on the savings portion of an insurance policy were taxable, would it

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If half the interest earned on the savings portion of an insurance policy were taxable, would it still be possible for taxpayers to eliminate their taxable income, in the absence of tax rule restrictions and market frictions? Illustrate your answer to this question by assuming that the taxpayer’s taxable income before arbitrage strategies is $ 100,000 and the before tax interest rate is 10%.
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Taxes And Business Strategy A Planning Approach

ISBN: 9780132752671

5th Edition

Authors: Myron Scholes, Mark Wolfson, Merle Erickson, Michelle Hanlon

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