A Tax Structure Under Which an Individual Is Taxed $1,000

question 35

Multiple Choice

A tax structure under which an individual is taxed $1,000 per year regardless of income is

• A) unconstitutional.
• B) progressive.
• C) proportional.
• D) regressive.
• E) biased against higher-income groups.

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Definitions:

Public Interest Theory

A theory suggesting that regulation is supplied in response to the demand of the public for the correction of inefficient or inequitable market practices.

Excise Tax

A tax on the sale or consumption of specific goods or services, such as tobacco, alcohol, and fuel.

Per Gallon

A unit of measurement used to quantify quantities, such as fuel efficiency or liquid commodity prices, based on volume per gallon.

Per Capita

A statistical measure that divides an aggregate by the number of individuals in the population, often used to express averages.