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:

Partnership

A business structure where two or more individuals share ownership, as well as the profits or losses of the business.

Capital Balances

The amount of money or value of assets that a company or an individual has invested in a business.

Net Income

The profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.

Time Devoted

The amount of time that is spent on a particular activity or task.