Which of the Following Might Logically Be Reasons Used in Support

question 11

Multiple Choice

Which of the following might logically be reasons used in support of a value added tax for the federal government?

• A) Improve separation of revenue sources across the levels of government federal, state, and local).
• B) Provide an increased economic incentive for private saving.
• C) Increase the responsiveness of the federal tax base to changes in the natural economic activity.
• D) Improve progressivity of the federal revenue system.

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Definitions:

Chemical Spill

The release of a hazardous substance, either liquid or powdered, into the environment, potentially causing harm to people, property, or the natural surrounding.

Permanent Disability

A long-term impairment that significantly restricts an individual's ability to engage in work or other daily activities.

Social Security

The federal Old Age, Survivors, Disability, and Health Insurance (OASDHI) program, which combines old age (retirement) insurance, survivor's insurance, disability insurance, hospital insurance (Medicare Part A), and supplementary medical insurance (Medicare Part B) for the elderly.

Defined-Benefit Plan

Pension plan that guarantees a specified level of retirement income.