A Lump Sum Tax Can Create an Excess Burden

question 22

True/False

A lump sum tax can create an excess burden.

---

Definitions:

Judgment Debts

Money that a court has ordered one party to pay another party as a result of a legal judgment.

Property Taxes

Taxes imposed by local governments on real estate based on the property's assessed value, used to fund public services.

Assessments

Evaluations or appraisals to determine the value, performance, or condition of something, often used in educational, professional, or property contexts.

Lender

An individual, bank, or financial institution that provides funds to another with the expectation of being repaid.