Scenario 20-2
The government is proposing switching from a progressive tax system, in which families pay 15% of the first $40,000 earned, 30% of the next $40,000 earned, and 45% of any income over $80,000 to a tax system in which every family pays 1/4 of its income regardless of how much they earn and all income redistribution is eliminated. That is, the tax revenue generated is used only for infrastructure, public administration, and national defense.
-Refer to Scenario 20-2. Which group would be most in favor of the proposed change in tax policy?
A) Liberals, because they believe in the maximin criterion.
B) Libertarians, because they do not believe in redistributing income.
C) Utilitarians, because they believe in diminishing marginal utility.
D) None of the above would be in favor of the proposed change.
Correct Answer:
Verified
Q139: Economists study poverty and income inequality to
Q166: Scenario 20-1
ā
The government is proposing switching from
Q211: Libertarians believe that
A)the government should choose just
Q212: Which of the following pholitical philosophies would
Q213: Scenario 20-1
The government is proposing switching from
Q214: Which of the following is not a
Q215: Based on U.S. income data from 2011,
Q219: Based on U.S. income data from 2011,
Q220: The 2011 U.S. distribution of income shows
Q221: Table 20-1
The following table shows the distribution
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents