Which of the following statements is true regarding taxes? While taxes may affect many fundamental business decisions, they do NOT have a large impact in political decisions. Taxes affect many business decisions, but are NOT important in personal financial decisions. Polical candidates often distinguish themselves from their opponents based on their tax policies.

The **third statement** is **true**: **"Political candidates often distinguish themselves from their opponents based on their tax policies."** **Explanation of Each Statement:** 1. **While taxes may affect many fundamental business decisions, they do NOT have a large impact in political decisions.** - **False.** Taxes are a central issue in political discourse. They influence voter preferences, campaign platforms, and policy-making decisions. Politicians often debate and propose tax-related policies to address economic and social issues. 2. **Taxes affect many business decisions, but are NOT important in personal financial decisions.** - **False.** Taxes play a significant role in personal financial decisions, including savings, investments, retirement planning, and everyday spending. Individuals consider tax implications when making decisions about purchasing homes, cars, or making investments. 3. **Political candidates often distinguish themselves from their opponents based on their tax policies.** - **True.** Tax policy is a key differentiator among political candidates. They propose various tax plans aiming to attract voters by addressing economic growth, income inequality, business development, and public services funding. These policies help voters understand each candidate's priorities and economic philosophies. **Conclusion:** Only the **third statement** accurately reflects the role of taxes in both business and political arenas.