Which of the Following Explains One Difference Between a Consumption

question 92

Multiple Choice

Which of the following explains one difference between a consumption tax and an income tax?

• A)An income tax is a regressive tax; a consumption tax is a progressive tax.
• B)Under a consumption tax,households pay taxes only on the part of income they spend; under an income tax,households pay taxes on all income earned.
• C)Under an income tax,present consumption is taxed more heavily than future consumption; under a consumption tax,future consumption is taxed more heavily than present consumption.
• D)Savings are taxed more heavily under a consumption tax than under an income tax.

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Definitions:

Assignment

The transfer of rights, property, or obligations from one party to another. This broad term is used across various legal contexts, including in contracts and real estate.

Delegation

The act of transferring authority or responsibility from one individual or group to another while retaining overall accountability.

Valid Delegation

The legal transfer of authority from one party to another, where the delegating party retains the responsibility for the task.

Delegator

A person or entity that assigns tasks or authority to another.