You Are Trying to Design a Tax System That Will

question 235

Multiple Choice

You are trying to design a tax system that will simultaneously achieve both of the following goals: 1) a person with no income would pay no taxes, and 2) a high-income person would pay a higher fraction of income in taxes than a low-income person. Which of the following statements is correct?

• A)A lump-sum tax would achieve the second goal but not the first.
• B)A regressive tax would achieve the second goal but not the first.
• C)A progressive tax could achieve both goals.
• D)A proportional tax could achieve the second goal but not the first.

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Definitions:

Change Strategy

A plan or approach designed to facilitate the transition from a current state to a desired future state, often involving steps to overcome barriers.

Negative Self-statements

Critical or pessimistic thoughts that an individual has about themselves, often a focus in cognitive-behavioral therapy to challenge and modify.

Coping Thoughts

Self-reassuring or motivating thoughts that people use to manage stress, overcome obstacles, or deal with challenging situations.

Self-defeating Thoughts

Negative thoughts about oneself that undermine one's confidence and can obstruct achieving goals.