Abner Contributes $2,000 to the Campaign of the Tea Party

question 55

Essay

Abner contributes $2,000 to the campaign of the Tea Party candidate for governor, $1,000 to the campaign of the
Tea Party candidate for senator, and $500 to the campaign of the Tea Party candidate for mayor. Can Abner deduct these political contributions?

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Definitions:

Spillover Benefits

The positive effects experienced by third parties or the wider community from an economic transaction or activity, which are not reflected in the market price.

Pollution Abatement

Measures and processes implemented to reduce, control, or eliminate pollution from various sources in order to protect the environment.

Marginal Benefit

The extra enjoyment or value derived from the consumption of one more unit of a product or service.

Marginal Cost

The increase in cost associated with the production of an additional unit of a good or service.