Both economic and social considerations can be used to justify:

a$.$ Disallowance of any deduction for expenditures deemed to be contrary to public policy $($e$.$g$.,$ fines, penalties, illegal kickbacks, bribes to government officials$).$

b$.$ Favorable tax treatment for accident and health plans provided for employees and financed by employers.

c$.$ Various tax credits, deductions, and exclusions that are designed to encourage taxpayers to obtain additional education.

d$.$ Allowance of a deduction for state and local income taxes paid.