Question

1] Professor Slither attended the Antarctic Economic Association meetings. She is able to deduct fully from her taxes the hotel expenses that she incurred, but can deduct only half of the meals expenses that she incurred. Does this tax policy make sense, from a Haig-Simons perspective?

Answer 1

The professor is able to deduct those expenses which are incurred for the purpose of accommodation during the meetings but she is allowed only half the amount which is incurred during the meetings, this type of tax policy dies not make any sense to me, there should be a clause that, if expenditure is incurred for a particular purpose then it should be allowed but not based on the nature of such expenditure.