Assume the state of California plans to amend its personal income tax laws to allow parents to reduce their tax by the cost of infant car seats. Which of the following statements is true?

Question

Quizplus · Accepted Answer

The statement mentions that the amendment allows parents to reduce their tax by the cost of infant car seats, which creates a tax preference for those who purchase car seats. Additionally, the purpose of the amendment is to change social behavior by encouraging parents to purchase infant car seats for the safety of their children. Thus, both options A and B are correct. Option C is not applicable since the amendment creates a tax preference and does not increase tax neutrality.

Assume the State of California Plans to Amend Its Personal