Question

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

Answer 1

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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