A Consumption Tax with an Exemption for the First $20,000

question 124

Multiple Choice

A consumption tax with an exemption for the first $20,000 of family consumption and a constant tax rate beyond that would be

• A)a proportional tax.
• B)a regressive tax.
• C)a progressive tax at low incomes and a regressive tax at high incomes.
• D)a progressive tax.

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Definitions:

Correspondence

Written communication; communication by the exchange of letters.

Memo-Style Communication

A concise, written form of communication typically used within organizations to inform or instruct employees.

Informal

Relaxed, casual, or not adhering strictly to rules or formalities.

Specific Concern

A particular issue or problem that requires attention or resolution.