In the American Welfare System

question 6

Multiple Choice

In the American welfare system

• A) Only the very wealthy had no stigma attached to them as they did not receive welfare assistance from the state
• B) Almost all citizens received public health and childcare assistance, with no stigma attached
• C) Those who needed help were viewed with suspicion and treated as less worthy
• D) Mothers were forced to give up their children to give them a better life

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Definitions:

Lump-Sum Tax

A tax that is a fixed amount, not varying with the taxpayer’s income level or expenditure, making it independent of the taxpayer’s behavior.

Excise Tax

An excise tax is a tax charged on specific goods and services, such as gasoline, cigarettes, and alcohol, typically to discourage their use or generate revenue.

Benefits Principle

A taxation theory that suggests taxes should be levied according to the benefits received by the taxpayer from government services.

Ability-To-Pay Principle

This principle suggests that individuals should be taxed based on their ability to pay, regardless of the benefits they receive.