Thomas Hobbes Argued for a Tax on Consumption Instead of on Income

question 245

Multiple Choice

Thomas Hobbes argued for a tax on consumption instead of on income because

• A) the standard of living depends not on income, but on how much income is spent.
• B) consumption is the best indication of ability to pay.
• C) a tax on income discourages saving by taxing savings twice.
• D) a tax on consumption raises more revenue than a tax on income.

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