Question

10. Tax expenditures are special provisions of the tax law such as exclusions, deductions, deferrals, credits, and tax rates that benefit specific activities or groups of taxpayers.

True/False _______________Correction to make true____________________________________________________________________________________

11. In an increasing number of states, revenue from gambling sources exceeds revenue from corporate net income taxes.

True/False _______________Correction to make true____________________________________________________________________________________

12. Under the Haig-Simmons definition of income, anything that provides consumption benefits to taxpayers or contributes to an increase in wealth (net of costs) is considered to increase welfare and ability to pay.

True/False _______________Correction to make true__________________________________________________________________________

Answer 1

1 True

Tax expenditures are special provisions of the tax code such as exclusions, deductions, deferrals, credits, and tax rates that benefit specific activities or groups of taxpayers.
Deductions and exclusions reduce the amount of income subject to tax. Examples are the deduction for mortgage income on personal residences and the exclusion of interest on state and local bonds. Deductions and exclusions reduce tax liability more for higher-income taxpayers facing higher marginal income tax rates than for lower-income taxpayers in lower rate brackets.

2 True

Gambling happends at very large level

13 True

When you earn money your lifestyle, consumption improves