Senator Green argues that replacing the income tax with a national sales tax would increase the level of output.Senator Brown objects that this policy would benefit the rich at the expense of the poor.

Question

Quizplus · Accepted Answer

Senator Green's argument is about efficiency because he believes that replacing the income tax with a national sales tax would lead to an increase in output. This argument is based on the premise that a consumption tax would provide incentives for savings and investment, ultimately leading to economic growth. On the other hand, Senator Brown's objection is primarily about equality, as he believes that a national sales tax would disproportionately benefit the rich while harming the poor, who would be burdened by higher prices on essential goods and services. Therefore, the best choice is D, where Senator Green's argument is primarily about efficiency, while Senator Brown's argument is primarily about equality.

Senator Green Argues That Replacing the Income Tax with a National