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.

---

Definitions:

Feminist Intervention

Therapeutic or social action approaches that focus on addressing and changing inequalities, particularly gender-based, to empower individuals.

Socioeconomic Equality

The state of equal access to wealth, opportunities, and privileges within a society, regardless of social class or economic status.

Legal Equality

The principle under which all individuals are subject to the same laws, with no individual or group having special legal privileges.

Feminist Perspective

An analytical framework that explores the inequalities between genders and advocates for equality and women's rights.