Suppose voter preferences over a public good funded through a proportional income tax are single peaked. If everyone has the same tastes and the public good is a normal good, then ideal points for higher income individuals will lie to the right of ideal points of lower income individuals.
Answer the following statement true (T) or false (F)
False
Rationale: If the public good is funded through a proportional income tax, each unit of the public good costs higher income individuals more than lower income individuals. Thus, the budget constraint (like the one in Graph 28.1 of the text) from which voter preferences are derived lies further out but is also steeper as income increases.
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