In general, is the U.S. federal tax system progressive or regressive? Progressive Regressive You bought 1,000 shares of Tund Corp. stock for $60.59 per share and sold it for $82.35 per share after a few years. How will your gain or loss be treated when you file your taxes? As a capital gain taxed at the long-term tax rate As a capital gain taxed at the current ordinary-income tax rate Depreciation expenses directly affect a company's taxable income. An increase in depreciation expense will lead to a__taxable income. It will__tax deducted from a company's earnings, thus leading to__operating cash flow. According to a tax law established in 1969, taxpayers must pay the__of the Alternative Minimum Tax (AMT) or regular tax. Suppose a firm in the 40% federal-plus-state tax bracket needs to pay $1 in dividends to its shareholders. What is the pretax income it should have to pay this dividend? $1.00 $1.67