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Which of the Following Does Not Distort Incentives and Is

question 39

Essay

Which of the following does not distort incentives and is best at promoting economic efficiency?
A.a lump-sum tax
B.a payroll tax
C.a property tax
D.an income tax


Definitions:

Joint Tax Return

A tax filing status for married couples who choose to file one tax return jointly, combining their incomes and deductions.

Qualifying Child

A dependent who meets specific IRS criteria regarding relationship, age, residence, and support, allowing taxpayers to claim certain credits and deductions.

Education Tax Credits

Tax credits that taxpayers can claim for eligible educational expenses, aimed at reducing the amount of tax owed to the government.

Full-time Law Student

An individual who is enrolled in a law school program on a full-time basis, typically leading to a juris doctor degree.

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