A lump-sum tax is defined as a tax that charges the same amount to each taxpayer, regardless of their economic behavior or circumstances. This means it does not vary with the taxpayer's income level or spending habits.

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A Lump-Sum Tax

Question 35

Multiple Choice

A lump-sum tax:

A) charges the same amount to each taxpayer, regardless of economic behavior or circumstances.
B) refers to annual, rather than quarterly, tax payments throughout the year.
C) is tied to spending habits, not income levels.
D) charges the same percentage to each taxpayer, regardless of economic behavior or circumstances.

Correct Answer: