Which of the Following Statements About a Flat Tax Rate

question 140

Multiple Choice

Which of the following statements about a flat tax rate on personal income is correct?

• A)A flat tax raises more revenue that a regressive tax.
• B)A flat tax removes the incentives for tax avoidance through loopholes and other mechanisms.
• C)Estonia and Russia have abandoned the use of a flat tax because they were unable to administer it.
• D)When a flat tax rate is combined with a threshold that exempts some income, the rich will pay less under a flat tax system than they do under the present U.S.system.

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