Question

Social considerations can be used to justify ____

(A) Allowance of a credit for child care expenses
(B) Allowing excess capital losses to be carried over to other years.
(C) Allowing accelerated amortization for the cost of installing pollution control facilities.
(D) Allowing a Federal income tax deduction for state and local sales taxes.

Answer 1

A) Allowance of a credit for child care expenses - child care is an important part of social policy, and many experts argue that it should be free in order to promote healthy demographics and social cohesion.

C) Allowing accelerated amortization for the cost of installing pollution control facilities - this would make said pollution control facilties cheaper, and less pollution is a social concern and a social policy because it benefits society as a whole. (Pollution is the most common example of externality).

D) Allowing a Federal Income Tax deduction for state and local taxes - as long as these deductions are applied progressively, ideally, only to poor people.