1. How does the legislative grace concept help identify amounts that qualify for deduction? 2. What.

1. How does the legislative grace concept help identify
amounts that qualify for deduction?

2. What is the purpose of the exemption deduction?

3. Based on the example in Exhibit 1–2, explain how
inflation can have two effects that result in a hidden tax.

4. Explain the pay-as-you-go system.

5. What is a tax credit?