Using the Following Choices, Show the Justification for Each Provision

question 101

Multiple Choice

Using the following choices, show the justification for each provision of the tax law listed.
a. Economic considerations
b. Social considerations
c. Equity considerations
d. Both a. and b.
-A deduction for interest on student loans.

• A)Deferral of gains from involuntary conversions
• B)Carryforward of net operating losses
• C)"No change" is a possible result
• D)State income tax applied to a visiting nonresident
• E)IRS special agent
• F)Undoing the "piggyback" result
• G)Ideal budget goal as to new tax legislation
• H)Every state that has a general sales tax has one
• I)Imposed by all states and the Federal government
• J)Imposed by some states but not the Federal government
• K)Imposed only by the Federal government
• L)No correct match provided

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Definitions:

Taxes

Compulsory financial charges or levies imposed by a government on individuals, businesses, or transactions to fund public services and infrastructure.

Supply

The total amount of a product (goods and services) available for purchase at any specified price.

Single Tax

A fiscal policy advocating for a sole tax to be levied on a single source, often proposed as a tax on land value.

Economic Rents

Payments to a factor of production in excess of the cost needed to bring that factor into production.