Irving Fisher Argued for a Tax on Consumption Instead of on Income

question 30

Multiple Choice

Irving Fisher argued for a tax on consumption instead of on income because

• A) the standard of living depends not on income, but on how much is consumed.
• B) consumption is the best indication of ability to pay.
• C) a tax on income discourages saving by taxing savings twice.
• D) a tax on consumption raises more revenue than a tax on income.

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Definitions:

Private Placement

The sale of securities to a relatively small number of select investors as a way of raising capital.