The fact that taxpayers can deduct the amount they paid in interest on a home mortgage from the income they report on their tax returns is an example of a(n)
A)entitlement program.
B)contributory program.
C)earned income tax credit.
D)tax expenditure.

Question

Quizplus · Accepted Answer

The ability to deduct mortgage interest from income on tax returns is considered a tax expenditure. This is because it lowers the amount of tax revenue the government would collect if mortgage interest was not deductible. It is not an entitlement program, contributory program, or earned income tax credit.

The Fact That Taxpayers Can Deduct the Amount They Paid