Which of the following statements regarding tax credits is True?
A) Tax credits reduce taxable income dollar for dollar.
B) Tax credits provide a greater tax benefit the greater the taxpayer's marginal tax rate.
C) Tax credits reduce taxes payable dollar for dollar.
D) None of these statements is True.

Question

Quizplus · Accepted Answer

Credits reduce the taxes payable dollar for dollar and are therefore not sensitive to marginal tax rates.

Which of the Following Statements Regarding Tax Credits Is True