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).X b. Various tax credits, deductions, and exclusions that are designed to encourage taxpayers to obtain additional education. c. Allowing a deduction for state and local income taxes paid. d. Favorable tax treatment for accident and health plans provided for employees and financed by employers