Why Do Some Policymakers Support a Consumption Tax Rather Than

question 319

Multiple Choice

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

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

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Definitions:

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychological development of humans, characterized by eight stages from infancy to adulthood.

Occupational Future

Prospects or predictions concerning one's career or professional development paths and opportunities in the forthcoming times.

Apathetic

Showing or feeling no interest, enthusiasm, or concern; indifferent.

Social Identity

An individual's sense of who they are based on their group memberships, such as nationality, religion, gender, and occupation.