________ Argued for a Tax on Consumption Instead of on Income

question 178

Multiple Choice

________ argued for a tax on consumption instead of on income because a tax on income discourages saving by taxing savings twice.

• A) John Rawls
• B) Thomas Hobbes
• C) Irving Fisher
• D) Bill Clinton

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Definitions:

Consumption

The use of goods and services by households or individuals.

Disposable Income

Resources earmarked for household financial activities in saving and spending following income tax calculations.

Saving

The segment of one's income that is not consumed but saved for future investments or use.

Consumption

The act of using goods and services for personal needs or to satisfy consumer demands.