Which of the Following Is an Argument Against a Tax

question 63

Multiple Choice

Which of the following is an argument against a tax system that encourages savings?

• A)that individuals know better that the government how much to save
• B)that saving is not an important determinant of a nation's ability to produce output
• C)that rich people would bear the burden of such a tax system
• D)that such a tax system would increase inequality

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Definitions:

High Debt

Refers to a significant level of liabilities or borrowed funds in relation to assets or equity, which can indicate financial risk.

Increasing Expenses

A situation where the costs of operating a business or undertaking a project are rising.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, illustrating profit or loss.

Profit

The financial gain obtained when the revenues generated from a business activity exceed the expenses, costs, and taxes needed to sustain the activity.