Which of the following statements concerning tax preferences is false?
A) Tax preferences increase the complexity of the law.
B) Tax preferences raise additional revenue for the government.
C) Tax preferences are government subsidies for targeted taxpayer activities.
D) Tax preferences do not improve the accurate measurement of the tax base.

Question

Quizplus · Accepted Answer

Tax preferences are actually deductions, exemptions, or credits provided by the government to encourage certain taxpayer activities or behaviors. As a result, they reduce the tax revenue collected by the government rather than raising it.

Which of the Following Statements Concerning Tax Preferences Is False