1.   American Mutual took the case to court, arguing that the law does not limit the deduction to the amount of dividend payments.

2.   Both state and federal tax breaks limit the deduction to various percentages of your adjusted gross income, depending on the type of property donated.

3.   A Senate bill introduced Tuesday attempts to hold down the rising cost of prescription drugs by limiting tax deductions that pharmaceutical companies can take for advertising costs.

4.   For example, Congress could limit deductions by businesses for health and life insurance.

5.   It argued that the law does not limit the deduction to the amount of dividend payments.

6.   The alternative minimum tax limits deductions and, once they are taken away, adds the minimum tax.

7.   The deduction is limited to earned income derived by the business.

8.   The options include taxing high-priced health insurance policies provided by employers, limiting itemized deductions, and modifying the home mortgage interest deduction.

9.   The Senate bill would limit the deductions that companies can take to the amount of money they estimate options cost in their profit statements.

10.   Although the bill increases exemption levels and will gradually reduce the corporate income tax, it also limits deductions and sets up other regulations to minimize tax evasion.