Which of the following statements regarding tax credits is true?
A) Tax credits reduce taxable income dollar for dollar.
B) Tax credits provide a greater tax benefit the greater the taxpayer's marginal tax rate.
C) Tax credits reduce taxes payable dollar for dollar.
D) None of these statements is truE.Credits reduce the taxes payable dollar for dollar and are therefore not sensitive to marginal tax rates.
Correct Answer:
Verified
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