Discuss the advantages of using an income tax system such as the one discussed in this chapter, as opposed to a consumption tax.
What will be an ideal response?
Using income as the unit of taxation allows for progressivity in the tax code. However, a
consumption tax encourages savings which is not the case in a standard income tax.
You might also like to view...
When regulators chose to allow insolvent S&Ls to continue to operate rather than to close them, they were pursuing a policy of
A) regulatory forbearance. B) regulatory kindness. C) ostrich reasoning. D) ignorance reasoning.
If the price of cereal increases by 10 percent and the amount of milk demanded decreases by 2 percent, then the cross-price elasticity of these goods is:
A. 5. B. 5. C. 0.2. D. 0.2
In 2017, the national debt was about ______.
a. $1 million per person b. $1 million per household c. $60,000 per person d. $60,000 per household
Disposable income is defined to be:
A. total income plus taxes. B. total income minus depreciation. C. total income minus taxes. D. All of these are true.