You Are Trying to Design a Tax System That Will

question 218

Multiple Choice

You are trying to design a tax system that will simultaneously achieve both of the following goals: 1) two people with the same total income would pay taxes of the same amount, and 2) a high-income person would pay a higher fraction of income in taxes than a low-income person. Which of the following tax systems could achieve both goals?

• A)a lump-sum tax
• B)a regressive tax
• C)a progressive tax
• D)a proportional tax

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Definitions:

Identical Twins

Twins who developed from a single zygote that then split and formed two embryos, sharing 100% of their DNA.

Biological Parents

The parents who have conceived and given birth to, or biologically fathered a child, as opposed to adoptive or step-parents.

Fraternal Twins

Siblings born at the same time who are genetically as similar as regular siblings because they come from two different eggs fertilized by two different sperm.

Polygenetic

Relating to the contribution of multiple genes in the determination of a particular trait or characteristic, often resulting in a wide spectrum of possible outcomes.