Final answer:
The statement is true as various tax provisions encourage education attainment and are supported by the benefit principle and the ability to pay principle, promoting economic and equitable benefits.
Step-by-step explanation:
The statement that tax credits, deductions, and exclusions are designed to encourage taxpayers to obtain additional education, and can be justified on economic and equity grounds is true. These tax provisions are aligned with principles like the benefit principle of taxation, ensuring those who benefit from government services pay in relation to the benefits they receive, and the ability to pay principle, indicating that those who can afford to pay taxes should contribute more.For example, provisions like the earned income tax credit (EITC) and Temporary Assistance for Needy Families (TANF) support low-income families and work as incentives for work and education, which can lead to positive economic spillover effects.
Furthermore, education-related tax incentives can increase the skill level of the workforce, providing benefits to both the individuals and the economy at large.The tax law provides various tax credits, deductions, and exclusions that are designed to encourage taxpayers to obtain additional education. These provisions can be justified on both economic and equity grounds. The tax credits, deductions, and exclusions help reduce the tax burden for individuals who pursue education, making it more affordable.For example, the earned income tax credit (EITC) provides a tax break that increases based on the amount a family works. The more they work, the more they receive. This tax credit encourages work and helps to alleviate poverty.