Question: Question 34 Which statement is correct? Tax deductions are less valuable for high-income taxpayers than for low-income taxpayers. Tax credits reduce tax liability on a

Question 34
Which statement is correct?
Tax deductions are less valuable for high-income taxpayers than for low-income taxpayers.
Tax credits reduce tax liability on a dollar-for-dollar basis.
Tax deductions reduce tax liability on a dollar-for-dollar basis.
The benefit of a tax credit depends on the taxpayer's marginal tax rate.

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