A Tax ________ Is an Amount Subtracted Directly from the Amount

question 14

Multiple Choice

A tax ________ is an amount subtracted directly from the amount of taxes owed.

• A)credit
• B)reduction
• C)deduction
• D)exclusion
• E)shelter

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Definitions:

Dollar Value

The worth of an item, service, or amount of money expressed in terms of the United States dollar currency.

Federal Income Tax

A tax levied by the U.S. federal government on the annual earnings of individuals, corporations, trusts, and other legal entities.

National Sales Tax

A tax imposed by the government on sales of goods and services, collected at the point of sale and paid by the final consumer.

Efficiency

The degree to which resources are used optimally to produce goods and services, minimizing waste and maximizing output.