Which, If Any, of the Following Provisions of the Tax

question 180

Multiple Choice

Which, if any, of the following provisions of the tax law cannot be justified as promoting administrative feasibility (simplifying the task of the IRS) ?

• A)Penalties are imposed for failure to file a return or pay a tax on time.
• B)Prepaid income is taxed in the year received and not in the year earned.
• C)Annual adjustments for indexation increases the amount of the standard deduction allowed.
• D)Casualty losses must exceed 10% of AGI to be deductible.
• E)A deduction is allowed for charitable contributions.

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Definitions:

Equilibrium Points

The state in a market where supply equals demand, and there is no incentive for price or quantity to change.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, leading to market equilibrium.

Supply and Demand

The basic economic principle where the quantity of goods supplied equals the quantity of goods demanded at a specific price point.

Computer Production

The process of manufacturing computers, encompassing assembly of components to the creation of software.