How do tax policies promote the interests of particular groups or encourage specific activities? How do tax expenditures amount

Question

White raven [17]

3 years ago

14

How do tax policies promote the interests of particular groups or encourage specific activities? How do tax expenditures amount

to government subsidies for different activities? Give specific examples

Advanced Placement (AP)

1 answer:

kotegsom [21] · Answer 1 · 2022-03-01T12:18:08+03:00

Taxation can help the activities of a particular group in the sense that they limits competition or encourage it whether it is a producer or consumer groups.
tax expenditure amount to subsidy because they lead to exemptions or deductions and reduction of credits targeted to a particular or specific group, for example medicare.
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