Actions by the Federal government that decrease the progressiveness of the tax system:
A)decrease the amount of government spending.
B)increase the effects of automatic stabilizers.
C)decrease the effects of automatic stabilizers.
D)increase the amount of taxation.

Question

Quizplus · Accepted Answer

Decreasing the effects of automatic stabilizers would make the tax system less progressive because automatic stabilizers, such as unemployment insurance and progressive income tax rates, are designed to provide more assistance to lower-income individuals and families. By reducing these effects, the tax system becomes less progressive. The other options listed would either have no effect on progressiveness or would increase progressiveness.

Actions by the Federal Government That Decrease the Progressiveness of the Tax