Scenario 20-2 The Government Is Proposing Switching from a Progressive Tax System

question 4

Multiple Choice

Scenario 20-2
The government is proposing switching from a progressive tax system, in which families pay 15% of the first $40,000 earned, 30% of the next $40,000 earned, and 45% of any income over $80,000 to a tax system in which every family pays 1/4 of its income regardless of how much they earn and all income redistribution is eliminated. That is, the tax revenue generated is used only for infrastructure, public administration, and national defense.
-Refer to Scenario 20-2. Which philosopher would be most in favor of the proposed change in tax policy?

• A)Jeremy Bentham
• B)John Stuart Mill
• C)John Rawls
• D)Robert Nozick

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Definitions:

Patient-Visits

A measure used in healthcare to indicate the number of times patients see a healthcare provider, physician, or use a service within a specific time frame.

Revenue

The cumulative revenue produced from the sale of products or services that are central to a company's main business activities.

Revenue Variance

The difference between the actual revenue earned and the budgeted or expected revenue.

Spending Variances

Differences between the budgeted amount of expense and the actual amount spent.