Which of the following is a tax incentive?

a set amount that you subtract from your gross income for yourself and any dependents

a tax on imported goods

the use of taxation to encourage or discourage certain behaviors

taking tax payments out of an employee’s pay before he or she receives it

1 answer

The correct answer is:

the use of taxation to encourage or discourage certain behaviors.

This option refers to tax incentives, which are provisions in the tax code designed to promote certain economic activities or behaviors by providing tax benefits.