Why might salary be preferred to deferred compensation even if the employees tax rate is falling over

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Why might salary be preferred to deferred compensation even if the employee’s tax rate is falling over time? Illustrate your answer using the changes in tax rates introduced in the TRA 86. Was salary preferred for both higher- and lower-compensated employees?
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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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