U.S.multinational corporations are allowed tax _________ for taxes paid to foreign governments.

Question

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U.S. multinational corporations are allowed tax credits for taxes paid to foreign governments, which can be used to offset their U.S. tax liability. This is intended to avoid double taxation on the same income. Deductions reduce the amount of taxable income, exemptions excuse certain income from taxation altogether, and loans are not related to taxation.

USmultinational Corporations Are Allowed Tax _________ for Taxes Paid to Foreign