The Difference Between a Value-Added Tax and a Flat Tax

question 395

Multiple Choice

The difference between a value-added tax and a flat tax is

• A) a value-added tax is progressive, while a flat tax is proportional.
• B) a value-added tax is vertically equitable, while a flat tax is horizontally equitable.
• C) a value-added tax satisfies the ability-to-pay principle, while a flat tax satisfies the benefits principle.
• D) There is essentially no difference between a value-added tax and a flat tax.

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Definitions:

Aggressively

Characterizes actions or behaviors that are forceful, potentially harmful, and undertaken with strong energy or intensity.

Francisco "Pancho" Villa

A prominent Mexican revolutionary general known for his role in the Mexican Revolution (1910-1920).

Peasant Insurgents

Individuals or groups from a rural or agricultural background who rebel against established authority or government, often due to grievances or oppression.

Latin American

Referring to countries in the Americas where Romance languages (primarily Spanish and Portuguese) are spoken.