Which of the following statements about taxes and government spending is correct?
A) Despite the overall progressive tax system, government expenditures disproportionately favor the rich and result in a system that is slightly regressive.
B) The progressive tax system is almost perfectly offset by regressive expenditures, making the overall system proportional.
C) The regressive tax system is offset by expenditures directed toward lower-income households, making the overall system proportional.
D) The overall system of taxes and spending is progressive, as over $1 trillion per year gets transferred from upper-income households to lower- and middle-income households.
Correct Answer:
Verified
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