1a What kinds of deductions are prohibited as a matter of pu

1a. What kinds of deductions are prohibited as a matter of public policy? bribes, kickbacks, and \"other\" illegal payments as nondeductibleT.

1b.Why might Congress deem it important to disallow deductions for expenditures against public policy?

Solution

The IRC lists bribes, kickbacks, and \"other\" illegal payments as nondeductibleCongress didn\'t want the tax benefits associated with deductions to benefit or subsidize wrongdoing of course, this rationale doesn\'t really explain the prohibition against deducting political contributions which is probably better explained by the potential perception that political efforts are being subsidized by taxpayers.