Consider the Net Tax Rate,denoted by T

question 3

Multiple Choice

Consider the net tax rate,denoted by t.Which of the following correctly defines the net tax rate?

• A)It is total tax revenue minus transfer payments.
• B)It is the sum of the federal income tax rate plus an average of provincial income tax rates.
• C)It is the increase in net tax revenue when national income rises by one dollar.
• D)It is the sum of all government tax revenues.
• E)Both A and C are correct.