Which of the following statements is NOT true?
A)States making use of an income tax tend to have the most progressive revenue systems overall.
B)Sales taxes collected by state governments tend to be more stable in times of economic downturns when compared to other taxes.
C)Inflation can drive people who get "cost of living raises" into higher tax brackets even though their real earning power does not increase.
D)Income taxes are relatively easy for governments to collect.

Question

Quizplus · Accepted Answer

Sales taxes are generally considered to be regressive and less stable in times of economic downturns because people spend less money, leading to lower sales tax revenue.

Which of the Following Statements Is NOT True