A Change from an Income Tax to a Consumption Tax

question 3

True/False

A change from an income tax to a consumption tax system would cause the greatest increase in taxes owed by those who currently put part of their savings into 401(k)retirement plans and Individual Retirement Accounts.

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Definitions:

Broadleaf Trees

Trees characterized by wide, flat leaves as opposed to needle-like leaves, common in deciduous forests.

Dormant

A state of physical or biological inactivity or rest, during which growth, development, and physical activity are temporarily stopped.

Chaparrals

A biome characterized by dense, evergreen shrubs and is found in regions with a Mediterranean climate, including parts of California and the Mediterranean basin.

Latitudes

The measurement of distance north or south of the Equator, expressed in degrees, that affects climate, daylight, and biological phenomena.