Final answer:
The claim regarding the Oregon exemption credit is false; the actual AGI limits for tax credits vary and should be verified with current year tax guidelines. Tax credits often phase out gradually, such as the earned income tax credit, to minimize the poverty trap.
Step-by-step explanation:
The statement that the Oregon exemption credit is not allowed if the Federal Adjusted Gross Income (AGI) exceeds $100,000 (S/MFS) or $200,000 (HoH/MFJ/QW) is false. Tax exemption credits and deductions often have thresholds based on AGI, but the specific limits vary by tax year and are subject to change. For accurate exemption credit information, consult the current tax year guidelines for Oregon and refer to official tax documents such as the IRS forms and publications. Moreover, the earned income tax credit, which is phased out slowly to avoid the poverty trap, is an example of how tax credits can be structured to support low- to moderate-income earners gradually reducing as income rises. The phase-out rate and income limits for the earned income tax credit are determined by the tax policy for the relevant year.