Which of the following is not a correct observation related to the comparison between a deduction and a credit?
A)A deduction of $100 is less valuable than a credit of $100.
B)A deduction of $100 is more valuable to a 40 percent bracket taxpayer than is a $30 credit.
C)A deduction of $100 is more valuable to a 40 percent bracket taxpayer than it is to a 30 percent bracket taxpayer.
D)A credit of $100 is more valuable to a 40 percent bracket taxpayer than it is to a 30 percent bracket taxpayer.

Question

Quizplus · Accepted Answer

A credit is equally valuable to taxpayers regardless of their tax bracket, as it directly reduces the tax liability by the same amount for everyone.

Which of the Following Is Not a Correct Observation Related