Which of the following statements is true ?
A) Sales, excise, and flat-rate taxes violate the ability-to-pay principle of taxation fairness because each results in a greater burden on the poor than the rich.
B) Government failure may occur if voters are rationally ignorant.
C) Government failure may occur because of special-interest group political pressure.
D) All of the above.

Question

Quizplus · Accepted Answer

A) is true and violates the ability-to-pay principle of taxation fairness because poorer individuals have a higher proportion of their income going towards these taxes than richer individuals.
B) is true because if voters are rationally ignorant, they may not have enough information or incentive to make informed decisions and hold politicians accountable for their actions.
C) is true because special-interest groups may use their political power to push for policies that benefit themselves at the expense of the rest of society. Therefore, all of the above are true.

Which of the Following Statements Is True