Why Do Some Policymakers Support a Consumption Tax Rather Than

question 308

Multiple Choice

Why do some policymakers support a consumption tax rather than an earnings tax?

• A) Because the average tax rate would be lower under a consumption tax.
• B) Because a consumption tax would encourage people to save earned income.
• C) Because a consumption tax would raise more revenues than an income tax.
• D) Because the marginal tax rate would be higher under an earnings tax.

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Historical Significance

The importance attributed to an event, object, or person in history based on its impact or contribution to the present and future.

Paternalism

A policy or practice of treating or governing people in a fatherly manner, especially by providing for their needs without giving them rights or responsibilities.

Canadian

Pertaining to Canada or its people, culture, or characteristics.

Mexican Governments

Refers to the various forms of government and leadership that have ruled over Mexico throughout its history, from pre-colonial civilizations to the modern federal republic.