Allowing a taxpayer to claim either a credit or a deduction for foreign taxes paid can be explained by equity considerations.

Question

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Allowing a taxpayer to claim either a credit or a deduction for foreign taxes paid is considered equitable because it prevents double taxation on the same income by both the United States and foreign countries. This ensures that taxpayers are not penalized for earning income abroad and promotes fairness in the tax system.

Allowing a Taxpayer to Claim Either a Credit or a Deduction