Which provision is not justified by social considerations?
A)Refundable earned income credit.
B)Adoption tax credit.
C)Like-kind exchange treatment.
D)Disallowance of illegal kickbacks.
E)None of the above.

Question

Quizplus · Accepted Answer

Like-kind exchange treatment is mainly provided to benefit taxpayers who exchange similar types of property for business purposes. It is not directly related to social considerations, but rather to economic and business considerations. Refundable earned income credit and adoption tax credit are provided to support low-income families and incentivize adoption, respectively, which have social considerations. Disallowance of illegal kickbacks is a provision that aims to prevent unethical behavior in business transactions, which also has social considerations.

Which Provision Is Not Justified by Social Considerations