The deductibility of state and local taxes at the federal level _____.
A)biases states against raising property taxes
B)increase the amount of federal taxes paid
C)reduces the marginal cost of paying state and local taxes
D)raises the costs of paying state and local taxes

Question

Quizplus · Accepted Answer

Deductibility of state and local taxes at the federal level reduces the marginal cost of paying state and local taxes as taxpayers are able to deduct the amount paid on their federal tax returns, reducing their overall tax burden.

The Deductibility of State and Local Taxes at the Federal