Should tax policy be designed to generate revenue

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Reference no: EM133608022

Problem: Deductions allowed by the Internal Revenue Code are often designed to encourage specific behavior. For example, the deduction for qualified residence interest is designed to encourage home ownership. The deduction for qualified retirement plan and IRA contributions is designed to encourage savings for retirement. Should tax policy be designed to generate revenue or influence behavior? Are the two choices mutually exclusive?

Reference no: EM133608022

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