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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Definitions:

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, responsible for refracting light.

Iris

The colored part of the eye surrounding the pupil, responsible for controlling the diameter and size of the pupil.

Fluid Accumulation

Fluid accumulation refers to the buildup of fluid in body tissues or cavities, often leading to swelling and discomfort; this can occur due to various medical conditions.

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, providing most of the eye's optical power.