All other things being equal, the tax beneﬁts of a tax credit outweigh the tax savings produced by a tax deduction because:

Name: All other things being equal, the tax beneﬁts of a tax credit outweigh the tax savings produced by a tax deduction because:
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Question

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Tax credits directly reduce a taxpayer's tax liability, while tax deductions only reduce taxable income. Therefore, the tax benefits of a tax credit are greater than the tax savings produced by a tax deduction.

All Other Things Being Equal, the Tax Beneﬁts of a Tax