What Would Changing the Basis of Taxation from Income Earned

question 197

Multiple Choice

What would changing the basis of taxation from income earned to amount spent do

• A)It would necessarily reduce tax revenues.
• B)It would lower effective interest rates on savings.
• C)It would distort incentives to earn income.
• D)It would eliminate disincentives to save.

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Definitions:

Primary Reinforcer

A naturally reinforcing stimulus, such as food or water, that satisfies a basic biological need.

Punishment

A consequence aimed at reducing a particular behavior, often used as a behavioral modification technique.

Antecedent

An event or condition that precedes and triggers a behavior or response, often studied in behaviorism to understand and modify behavior.

Aversive Control

A behavioral control technique involving the use of unpleasant stimuli to influence the occurrence of certain behaviors.