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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?


Definitions:

Dermal

Pertaining to the skin, particularly its deeper layer known as the dermis which contains nerve endings, glands, and vessels.

Melanoma

A type of skin cancer that develops from the pigment-producing cells known as melanocytes; it is the most serious form of skin cancer.

Freckles

Small, pigmented spots on the skin, typically appearing as a result of exposure to sunlight and predominantly seen in people with lighter skin.

Diameter

A straight line passing from side to side through the center of a body or figure, especially a circle or sphere, representing the longest distance across it.

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