What Is the Main Difference Between a Consumption Tax and an Income

question 3

Multiple Choice

What is the main difference between a consumption tax and an income tax?

• A)A consumption tax requires households to pay taxes only on the income they have left after consumption, while an income tax requires households pay taxes on all earned income before consumption.
• B)A consumption tax requires households to pay taxes only on the income they spend, while an income tax requires households pay taxes on all earned income.
• C)A consumption tax always generates less revenue than an income tax.
• D)A consumption tax cannot be designed with exemptions, while an income tax can be.
• E)There is no difference between a consumption tax and an income tax.

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Definitions:

Female Sexual Interest/Arousal Disorder

A condition characterized by a lack of, or significantly reduced, sexual interest and arousal, which causes distress or interpersonal difficulties.

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The enlargement or engorgement of the clitoris, which can occur as a result of sexual arousal or other physiological processes.

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A sexual dysfunction characterized by a persistent or recurrent lack of interest in sex, causing distress.