You Are Trying to Design a Tax System That Will

question 235

Multiple Choice

You are trying to design a tax system that will simultaneously achieve both of the following goals: 1) a person with no income would pay no taxes, and 2) a high-income person would pay a higher fraction of income in taxes than a low-income person. Which of the following statements is correct?

• A)A lump-sum tax would achieve the second goal but not the first.
• B)A regressive tax would achieve the second goal but not the first.
• C)A progressive tax could achieve both goals.
• D)A proportional tax could achieve the second goal but not the first.

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Definitions:

Tenant Farmers

Farmers who rent land for cultivation rather than owning it, often under conditions that can lead to economic disadvantage.

Elaine, Arkansas

A town in the United States known for the Elaine Massacre of 1919, where racial tensions led to a violent conflict and the deaths of many African Americans.

Deputy Sheriff

An officer of the law who serves in the capacity of assisting or acting in place of the sheriff, often involved in law enforcement duties within a county.

African Americans

A term referring to citizens or residents of the United States who have ancestry from the black racial groups of Africa.