The Sales Tax

question 63

Multiple Choice

The sales tax

• A)is consistent with the benefits-received principle because low-income individuals spend less on goods and services than do high-income people.
• B)is not consistent with the ability-to-pay principle because low-income individuals tend to spend a larger fraction of their income than do high-income individuals.
• C)is not consistent with the ability-to-pay principle because low-income individuals tend to purchase a smaller bundle of goods and services compared to high-income individuals.
• D)is not consistent with the benefits-received principle because low-income individuals spend less on goods and services than do high-income individuals, yet pay the same sales tax rate.

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Definitions:

Booker T. Washington

An influential African American educator, author, and orator in the late 19th and early 20th centuries, who advocated for African American advancement through education and entrepreneurship.

Social Equality

A state where every person in a society possesses equal status regarding civil liberties, freedom of expression, rights to property, and equitable opportunities to access social services and goods.

Discriminatory Legislation

Laws and statutes specifically designed to limit the rights or privileges of certain groups based on race, gender, religion, or other characteristics.

Theodore Roosevelt

Theodore Roosevelt was the 26th president of the United States, known for his progressive policies and conservation efforts.