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Which of the following

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Which of the following

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Which of the following, if true, is the best and most logical completion of the argument below?
The United States tax system encourages indebtedness by making home mortgage loan interest tax deductible. In addition, the U.S. taxes gains on stock savings. The U.S., however, does have policy to increase savings, such as _________.

A. Encouraging consumers to buy homes.
B. giving tax deductions to bank lenders engaged in high-risk loans in impoverished neighborhoods.
C. subsidizing the sales of automobiles.
D. offering deductions for charitable donations.
E. allowing tax reductions for parts of a taxpayer’s income that are set aside as savings plans.

What is wrong with other Options?

OA E

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lheiannie07 wrote:
Which of the following, if true, is the best and most logical completion of the argument below?
The United States tax system encourages indebtedness by making home mortgage loan interest tax deductible. In addition, the U.S. taxes gains on stock savings. The U.S., however, does have policy to increase savings, such as _________.

A. Encouraging consumers to buy homes.
B. giving tax deductions to bank lenders engaged in high-risk loans in impoverished neighborhoods.
C. subsidizing the sales of automobiles.
D. offering deductions for charitable donations.
E. allowing tax reductions for parts of a taxpayer’s income that are set aside as savings plans.

What is wrong with other Options?

OA E
We're looking for an answer choice that shows how tax policy can induce people to increase their savings. E is the only answer choice that even mentions savings! Everything else is outside the scope of what we're looking for.

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