Final answer:
Exclusions and deferrals for tax purposes are intentional measures established by congressional action, are narrowly defined, and often aim to subsidize or promote specific economic behaviors.
So, the correct answer is A, B, and C.
Step-by-step explanation:
Exclusions and deferrals for tax purposes can be described by the following statements:
- These provisions are the result of specific congressional action.
- These provisions are often narrowly defined.
- These provisions are often granted in order to subsidize or encourage particular behaviors.
Tax exclusions and deferrals can take various forms, such as lowering tax rates on certain income brackets, providing tax credits, and implementing tax exemptions for certain groups or activities. The decision to include these provisions in the tax code often reflects governmental attempts to encourage business investment, savings, and spending in certain areas, thereby influencing the economy. For example, the Republican Congress's fiscal policies in the 1920s, which included tax rate reductions for wealthy Americans and the raising of exemption levels, as well as the promotion of fiscal conservatism later on, reflect such strategic use of tax policies to make desired economic adjustments.
So, the correct answer is A, B, and C.