Which of the Following Is NOT an Example of a Tax

question 12

Multiple Choice

Which of the following is NOT an example of a tax incentive policy?

• A) The federal government gives a tax credit to MNEs that make domestic capital improvements but not foreign capital improvements.
• B) Corporations are allowed to take a direct tax credit for each dollar of matching donations they make to institutions of higher education.
• C) A tax law is passed that makes interest on property non-tax-deductible, but interest payments on durable goods are.
• D) All are examples of a tax incentive policy.

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Definitions:

Informal Channel

A method of communication that occurs outside official or formal organizational structures, often relying on personal networks or social media.

Communication

The process of exchanging information, thoughts, messages, or speeches, either verbally or non-verbally, between two or more parties.

Coercive Power

A form of power that relies on the ability to compel or force someone to comply through threats or punishment.

Effective

The degree to which something is successful in achieving a desired result or outcome.