An across-the-board income tax cut where all income taxes were cut by a constant percentage would
A. necessarily go to higher-income people and alter the after-tax distribution of income in favor of high-income people.
B. necessarily go to higher-income people.
C. alter the after-tax distribution of income in favor of high-income people.
D. by definition, keep the after-tax distribution of income relationships constant.
Answer: A
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Money's ability to store value depends on how fast prices in the economy are increasing
Indicate whether the statement is true or false
If we compare the four sources of spending in the economy we see that
A) household consumption is the smallest. B) government expenditure is the largest. C) business investment is the largest. D) household consumption is the largest.
The social interest theory of regulation predicts that the political process will seek to minimize
A) producer surplus. B) consumer surplus. C) total surplus. D) deadweight loss.
We go from Gross to Net Domestic Product by
A) adding depreciation to GDP. B) subtracting depreciation from GDP. C) adding indirect business taxes to GDP. D) subtracting indirect business taxes from GDP.