Which of the Following Statements Concerning Tax Preferences Is True

question 22

Multiple Choice

Which of the following statements concerning tax preferences is true?

• A) The annual revenue loss from federal tax preferences is quantified in the Tax Expenditures Budget.
• B) Tax preferences increase the fairness of the tax law.
• C) Tax preferences simplify the tax law.
• D) Tax preferences make the tax law more neutral across taxpayers.

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Definitions:

Interpretative Reactions

Responses or interpretations by individuals or groups to events or situations, often influenced by their own experiences, attitudes, and beliefs.

Fraternal Deprivation

A feeling of discontent experienced by individuals when perceiving that their group unfairly receives less resources or opportunities compared to other groups.

Egoistic Deprivation

A feeling of lacking personal resources or benefits that one believes they deserve, leading to dissatisfaction or resentment.

Escape Panic

Intense, irrational, and often self-destructive behavior that occurs in groups facing real or perceived threats.