There is a possibility that a national sales tax will be implemented. Many economists argue that items such as food and clothing should be exempt from such a tax because low-income people spend a greater percentage of their income on these goods than do high-income individuals. This argument is motivated by concerns over
A) economic growth.
B) economic stability.
C) efficiency.
D) equity.

Question

Quizplus · Accepted Answer

The argument is motivated by concerns over equity, as it focuses on the fairness of the tax system in relation to the burden placed on low-income individuals compared to high-income individuals.

There Is a Possibility That a National Sales Tax Will