Which of the following is an example of a tax expenditure?
A)tax breaks to companies that invest in innovation and expansion
B)federal grants to companies for research and development
C)federal loans to banks
D)fees paid to farmers for not planting their fields

Question

Quizplus · Accepted Answer

Tax expenditures are reductions in tax liabilities offered by the government to encourage certain activities or investments, such as tax breaks for companies that invest in innovation and expansion.

Which of the Following Is an Example of a Tax