Which of the Following Tax Policies Would Increase the Redistribution

question 37

Multiple Choice

Which of the following tax policies would increase the redistribution of wealth across society?

• A) Repealing the federal estate and gift taxes
• B) Increasing the highest marginal income tax rate by 10%
• C) Replacing the progressive income tax rate structure with a flat rate
• D) Replacing the income tax with a national sales tax

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Definitions:

Equipment

Items of property intended for long-term use in the operation of a business, such as machinery and furniture.

Liability Account

An account representing an obligation or amount owed by a business to others, such as loans, accounts payable, or mortgages.

Revenue Account

An account that tracks the income a company generates from its operations or activities.