A consumption tax system is likely to benefit

Name: A consumption tax system is likely to benefit
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Higher income individuals are likely to benefit from a consumption tax system because they typically have a lower marginal propensity to consume, meaning they spend a smaller proportion of their income. This allows them to save and invest more, which is less taxed under a consumption tax system compared to systems that tax income or capital gains more heavily.

A Consumption Tax System Is Likely to Benefit