A flat tax which does allow deductions for investment spending is a type of
A) luxury tax.
B) consumption tax.
C) investment tax.
D) excise tax.

Question

Quizplus · Accepted Answer

A flat tax with deductions for investment spending is a type of consumption tax. This means that individuals are taxed based on their overall consumption, rather than their income or wealth. The deductions for investment spending incentivize individuals to save and invest, which can promote economic growth.

A Flat Tax Which Does Allow Deductions for Investment Spending