Why Do Some Policymakers Support a Consumption Tax Rather Than

question 319

Multiple Choice

Why do some policymakers support a consumption tax rather than an earnings tax?

• A)The average tax rate would be lower under a consumption tax.
• B)A consumption tax would encourage people to save earned income.
• C)A consumption tax would raise more revenues than an income tax.
• D)The marginal tax rate would be higher under an earnings tax.

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Definitions:

Temperature

A measure of thermal energy within a substance or system, reflecting the degree of heat present and influencing the physical state and reactions of matter.

Anther

The part of a flower's stamen that contains pollen, which is necessary for fertilization in plants.

Nonreproductive

Pertaining to functions or behaviors not directly involved in the process of reproduction.