Which of the Following Statements About Taxes and Government Spending

question 202

Multiple Choice

Which of the following statements about taxes and government spending is correct?

• A)Despite the overall progressive tax system, government expenditures disproportionately favor the rich and result in a system that is slightly regressive.
• B)The progressive tax system is almost perfectly offset by regressive expenditures, making the overall system proportional.
• C)The regressive tax system is offset by expenditures directed toward lower-income households, making the overall system proportional.
• D)The overall system of taxes and spending is progressive, as over $1 trillion per year gets transferred from upper-income households to lower- and middle-income households.

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