Which of the Following Is an Explanation for Why Insurance

question 60

Multiple Choice

Which of the following is an explanation for why insurance premiums on a key employee are not deductible?

• A)A deduction for the insurance premium would offset taxable income without the potential for the proceeds generating taxable income.
• B)The federal government does not want to subsidize insurance companies.
• C)It is impractical to trace insurance premiums to the receipt of proceeds.
• D)Congress presumes that all expenses are not deductible unless specifically allowed in the Internal Revenue Code.
• E)This rule was grandfathered from a time when the Internal Revenue Code disallowed all insurance premiums deductions.

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Definitions:

Genetically Modified Agricultural Products

Crops or livestock that have had their genetic material altered using genetic engineering techniques to introduce desirable traits.

Congress

The legislative body of the United States government, composed of the House of Representatives and the Senate.

Lobbying Efforts

Actions aimed at influencing decisions made by officials in the government, often undertaken by individuals or groups through various methods of persuasion.

Notice-And-Comment Rulemaking

A regulatory process that requires agencies to publish proposed rules, accept public comments, and consider those comments before finalizing regulations.