Which of the Following Statements Concerning Tax Preferences Is True

question 22

Multiple Choice

Which of the following statements concerning tax preferences is true?

• A) The annual revenue loss from federal tax preferences is quantified in the Tax Expenditures Budget.
• B) Tax preferences increase the fairness of the tax law.
• C) Tax preferences simplify the tax law.
• D) Tax preferences make the tax law more neutral across taxpayers.

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Definitions:

Diaphragm

A dome-shaped muscular partition separating the thorax from the abdomen in mammals, playing a major role in breathing by contracting and flattening to enlarge the thoracic cavity.

Orbicularis Oris

A complex of muscles in the lips that encircles the mouth, enabling it to close, pucker, and articulate words and expressions.

Diaphragm

A muscular and tendinous sheet that separates the chest cavity from the abdominal cavity and plays a major role in breathing.

Tendon

A tough, flexible band of fibrous tissue that connects muscles to bones.