Which,if any,of the provisions in the tax law enumerated below cannot be justified under the wherewithal to pay concept?
A)The taxation of prepaid income in the year of receipt and not in the year it is earned.
B)The installment method for reporting gain on the sale of property.
C)The nontaxability of a like-kind exchange.
D)The disallowance as a deduction of certain fines and penalties imposed for the violation of certain laws.
E)The rules governing the formation of corporations.

Question

Quizplus · Accepted Answer

The wherewithal to pay concept suggests that taxes should be levied when the taxpayer has the means to pay. Disallowing deductions for fines and penalties does not align with this concept, as it does not relate to the taxpayer's ability to pay.

Which,if Any,of the Provisions in the Tax Law Enumerated Below