Question

The primary objective of the federal income tax law is to raise revenue. What are its secondary​ objectives? A. Social and public policy​ objectives, (e.g. encouraging charitable contributions and discouraging illegal​ bribes). B. Encouraging certain activities such as research and development and small business investment. C. Economic objectives such as stimulating private​ investment, reducing​ unemployment, and mitigating the effects of inflation. D. All of the above

Answer 1

D) All of the above

• A. Social and public policy​ objectives, (e.g. encouraging charitable contributions and discouraging illegal​ bribes).
• B. Encouraging certain activities such as research and development and small business investment.
• C. Economic objectives such as stimulating private​ investment, reducing​ unemployment, and mitigating the effects of inflation.

Step-by-step explanation:

Nobody likes paying taxes, but besides raising revenue for the government they are also useful tool that helps the government redistribute wealth and guiding (not allocating, only making some recommendations and providing alternatives) about the use of private resources.

For example, when wealthy people pay certain social security and unemployment taxes, they are contributing to the social network of the government. By allowing charitable deductions, the government is encouraging individuals and corporations to donate money to qualifying charities, but it is not mandatory.