Tax expenditures are:

Name: Tax expenditures are:
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Question

Quizplus · Accepted Answer

Tax expenditures refer to the loss in revenue that results from tax preferences such as deductions, exemptions, and credits. They are essentially a form of government spending through the tax code. Tax expenditures can account for a significant portion of overall tax revenue, often exceeding 10 percent in some countries. Therefore, option (c) is incorrect. Option (a) is also incorrect as tax expenditures do not involve spending to collect taxes.

Tax Expenditures Are