Question

Which of the following is equal to government revenue losses attributable to tax law provisions that allow special exclusions, exemptions, or deductions from gross income or that provide a special credit, preferential tax rate or deferral of liability? a tax credits ob withholding ge tax experuliures d. tax deductions QUESTIONS Which item was the largest tax expenditure of the federal government in 2018? a exclusion of pension contributions and earnings, including 401(k) plans b deductibility of home mortgage interest c.exclusion of employer contributions for medical insurance from taxable income od deductibility of state and local taxes QUESTION 7 of couples pay a marriage penalty, of couples receive a marriage subsidy, and of couples have neither a penalty nor a subsidy According to a 2012 report on tax paying couples, a 15% 38% 48% b . 15:38% 3 :15 od 48% 38% 15% QUESTIONS Which of the following CANNOT be word from rows income as a deduction? O contributions to health savings accounts beimbursed employee expenses centrations to tirement savings accounts od interese paid on studentams QUESTIONS

Answer 1

Answer -5 Correct option- C Tax Expenditures

Tax expenditures are defined by law as “revenue losses attributable to provisions of the Federal tax lawswhich allow a special exclusion, exemption, or deduction from gross income or which provide a special credit, a preferential rate of tax, or a deferral of tax liability.”

Option A is incorrect as a tax credit can be defined as an amount of money that taxpayers are permitted to subtract from the due income taxes.

Option B is incorrect as withholding tax can be defined as the amount that an employer withholds from employees’ wages and pays directly to the government.

Option D is incorrect as tax deductions is a concept that helps to reduce the tax liability of a tax payer by reducing the amount of taxable income