(Consider This) Which of the Following Claims Is Not Made

question 122

Multiple Choice

(Consider This) Which of the following claims is not made by opponents of a value-added tax (VAT) ?

• A)Savings and investment is discouraged because future consumption is penalized.
• B)The VAT is regressive, potentially leading to additional progressive taxes to offset the regressive VAT.
• C)Sellers bear a disproportionately large burden of the tax.
• D)The VAT is a hidden tax, and thus easier to raise to support the expansion of government.

---

Definitions:

Bankruptcy Trustee

A legally appointed individual responsible for managing the financial affairs of a person or business declared bankrupt, including asset liquidation and disbursing proceeds to creditors.

Chapter 7 Bankruptcy

A process under federal law designed to eliminate unsecured debts and liquidate non-exempt assets to pay creditors.

Chapter 7

This typically refers to a chapter of the U.S. Bankruptcy Code dealing with liquidation, where a debtor's assets are sold to pay off creditors.

Secured Party

An individual or entity that has been given a security interest in the property of a debtor as collateral for a loan or obligation.