Which of the Following Statements Regarding Tax Credits Is True

question 59

Multiple Choice

Which of the following statements regarding tax credits is true?

• A)Tax credits reduce taxable income dollar for dollar.
• B)Tax credits provide a greater tax benefit the greater the taxpayer's marginal tax rate.
• C)Tax credits reduce taxes due dollar for dollar.
• D)None of these statements are true.

---

Definitions:

Class Action

A lawsuit filed by one or more plaintiffs on behalf of a larger group of people who are similarly affected by the same issue.

Representative Plaintiff

An individual in a class action lawsuit who represents the interests of the class members and whose experience typifies the grievances of the whole class.

Named Plaintiff

A named plaintiff is an individual who brings a lawsuit or is named in a legal action on behalf of a group in a class action lawsuit, representing the interests of the members of the class.

Lead Plaintiff

A representative party in a class-action lawsuit who has a significant interest in the outcome and leads the litigation process.