Which of the Following Tax Systems Is the Most Fair

question 459

Multiple Choice

Which of the following tax systems is the most fair?

• A)proportional taxes
• B)regressive taxes
• C)progressive taxes
• D)There is no objective way to assess fairness among the three systems.

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Definitions:

Profit Potential

The capacity or possibility for a business or investment to generate earnings over costs.

Invisible-Hand Concept

This concept, introduced by Adam Smith, suggests that the self-regulating nature of the marketplace leads to economic efficiency through individuals' pursuit of their own self-interest.

Resource Suppliers

Entities or individuals that provide the inputs or resources, such as labor, land, capital, and materials, needed for production processes.

Public Interest

The welfare or well-being of the general public and society as a whole, often considered in policy-making and law.