Which of the Following Statements Is False

question 201

Multiple Choice

Which of the following statements is false?

• A) An income tax taxes savings twice only if consumption is the measure used to gauge a person's ability to pay.
• B) Proponents of income as a tax base argue that you should not be taxed on what you draw out of the common pot, but rather on the basis of your ability to draw from the pot.
• C) The double taxation of saving tends to increase the saving rate because people have to save more to keep the after-tax yield constant.
• D) At this time, there is not clear consensus on what the best tax base is.

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Definitions:

Tombstone Advertisement

A simple and straightforward advertisement typically used in the finance sector to announce a public offering.

Waiting Period

A designated period of time one must wait before a certain action can be taken or a particular benefit becomes effective.

Red-Herring Prospectus

A prospectus with a warning written in red print at the top of the page telling investors that the registration has been filed with the SEC but is not yet approved.

Warning

A notice given to inform someone of possible danger, risk, or other negative consequences that may occur.