A Tax That Imposes a Small Excess Burden Relative to the Tax

question 204

Multiple Choice

A tax that imposes a small excess burden relative to the tax revenue that it raises is

• A)a payroll tax.
• B)a sin tax.
• C)an efficient tax.
• D)a FICA tax.

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Definitions:

Income

Income is the monetary payment received by an individual or household for work or through investments, pensions, or other sources, which is used for daily living expenses and savings.

Black and Latino Families

Households or familial groups that identify as part of the Black or Latino/Hispanic communities, focusing on their cultural, social, or economic aspects.

Urban Ghettos

Densely populated urban areas marked by poverty and social isolation, often inhabited by minority groups facing economic and social disadvantages.

Rural Trailer Parks

Residential areas in rural settings where multiple mobile homes or trailers are placed, often providing affordable housing options.