All of the Following Statements Are True Except

question 173

Multiple Choice

All of the following statements are true except

• A) an income tax taxes savings twice only if consumption is the measure used to gauge a person's ability to pay.
• B) proponents of income as a tax base argue that you should be taxed on what you draw out of the common pot instead of on the basis of your ability to draw from the pot.
• C) the double taxation of saving tends to reduce the saving rate.
• D) at this time, there is not clear consensus on what the best tax base is.

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Definitions:

Self-Serving Bias

Underestimates internal factors and overestimates external factors as influences on someone’s behavior.

Fundamental Attribution Error

The tendency to attribute others' actions to their character or personality, while attributing one's own behaviors to situational factors.

Performance Problems

Issues or difficulties that negatively affect an individual's or organization's ability to achieve objectives or maintain standards.

Projection

A defense mechanism in which an individual attributes their own undesired thoughts, feelings, or motivations to someone else.