The Chief Advantage of Replacing Personal Income Tax with a Consumption

question 24

True/False

The chief advantage of replacing personal income tax with a consumption tax is that it would remove the disincentive to saving that arises from the levying of personal income tax on income from savings.

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Definitions:

Innate

describes traits, behaviors, or abilities that are present from birth and not acquired through learning or experience.

Imprinting

A rapid form of learning occurring at a particular life stage wherein a young animal forms attachments to or preferences for specific objects or individuals.

Sensitive Period

A sensitive period is a specific time in an individual's development when they are more responsive to certain experiences or learning opportunities.

Permanent And Irreversible

Describes a condition or change that is lasting and unable to be undone or returned to its original state.