In a World with Saving,making an Income Tax a Consumption

question 10

Multiple Choice

In a world with saving,making an income tax a consumption tax would require the tax base to be _____.

• A)income
• B)income minus savings
• C)consumption plus investment
• D)comprehensive

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Definitions:

Politics

The activities associated with governance of a country or area, especially the debate among individuals or parties hoping to achieve power.

Passivity

A behavior characterized by inactivity or the lack of response to external stimuli or events, often resulting in acceptance of circumstances without resistance or attempt to initiate change.

Karl Marx

A 19th-century philosopher, economist, and political theorist known for his critique of capitalism and his advocacy for communism as an alternative.

Circumstances

The specific conditions or factors affecting a situation, event, or decision at a given time.