Question

Some provisions of the Federal tax law, particularly those dealing with individuals, can be explained by social considerations. Which of the following is not an example of this?

a.Various tax credits, deductions, and exclusions are designed to encourage taxpayers to obtain additional education.
b.Tax law is used to encourage companies to provide employees with health benefits.
c.A tax deduction is allowed for gambling losses at Native American-owned casinos.
d.A deduction is allowed for contributions to qualified charities.
e.A tax credit is allowed for amounts spent to furnish care for dependents to enable the taxpayer to work.

Answer 1

Option c, a tax deduction for gambling losses at Native American-owned casinos, is not an example of social considerations in the Federal tax law.

Step-by-step explanation:

The provision that is not an example of social considerations in the Federal tax law is option c, which states that a tax deduction is allowed for gambling losses at Native American-owned casinos.

This provision is not driven by social considerations as it does not directly encourage beneficial behavior or support societal goals. Instead, it is a tax deduction that allows individuals to offset their losses from gambling activities at these specific establishments.

The other options, a, b, d, and e, all promote social considerations by encouraging education, providing health benefits, supporting charitable contributions, and enabling individuals to work while providing care for dependents, respectively.