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5 Jul 2019
Taxpayers who choose to itemize their deductions are allowed to deduct taxes paid to state and local governments from their federal taxable income. One rationale for this tax expenditure is that paying state and local taxes reduces an individualâs ability to pay federal taxes. Provide an argument against the federal deductibility of state and local taxes on the grounds of
A. economic efficiency
B. horizontal equity
C. vertical equity
Taxpayers who choose to itemize their deductions are allowed to deduct taxes paid to state and local governments from their federal taxable income. One rationale for this tax expenditure is that paying state and local taxes reduces an individualâs ability to pay federal taxes. Provide an argument against the federal deductibility of state and local taxes on the grounds of
A. economic efficiency
B. horizontal equity
C. vertical equity
Tod ThielLv2
6 Jul 2019