Economics for Today 9th Edition by Irvin Tucker

Exercise 18

Suppose that society had been using a progressive income tax, but shifted to a proportional or true flat tax. If total tax revenues to government were the same under the two plans, who would be made better off and who would be made worse off?
A) Those with low incomes would be made better off, and those with high incomes would be made worse off.
B) People at all income levels would be better off.
C) People at all income levels would be worse off.
D) Those with low incomes would be made worse off, and those with high incomes would be made better off.