Which of the Following Statements About a Regressive Tax Rate

question 2

Multiple Choice

Which of the following statements about a regressive tax rate structure is false?

• A)A regressive rate structure cannot result in vertical equity.
• B)Regressive rates decrease as the tax base increases.
• C)A regressive rate structure places a proportionally heavier tax burden on taxpayers with smaller tax bases than persons with greater tax bases.
• D)None of the above is false.

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Definitions:

Ronald Reagan

The 40th President of the United States (1981-1989), known for his conservative policies and role in ending the Cold War.

Tax Reform Act

Legislation aimed at altering tax policies, often seeking to adjust rates, broaden the tax base, or simplify the tax code. Specific acts by this name have been enacted in various years in different countries.

Tax Shelters

Financial arrangements made to minimize or avoid taxes through legal means.

Loopholes

Provisions in laws that allow people to avoid their intent, often used to evade regulations or taxes without technically breaking the law.