Deductions and tax credits both benefit high-income individuals more than moderate earners.

Name: Deductions and tax credits both benefit high-income individuals more than moderate earners.
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Deductions reduce taxable income, and their value depends on the taxpayer's marginal tax rate, which can benefit high-income individuals more. However, tax credits reduce tax owed dollar for dollar and can be designed to benefit moderate earners more significantly, especially refundable credits.

Deductions and Tax Credits Both Benefit High-Income Individuals More Than