In general, is the U.S. federal tax system progressive or regressive? Regressive Progressive 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 a _____operating cash flow. If a taxpayer is liable to pay $8, 950 under AMT law but $7, 500 according to the regular tax system, the taxpayer will need to pay taxes according to the 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