One advantage of using an inflation tax over other methods of tax collection is that ________.
A) the revenue from inflation tax is extremely high
B) the collection of inflation tax is more organized
C) people who evade other taxes also feel the burden of an inflation tax
D) inflation tax only affects individuals with a high income

Question

Quizplus · Accepted Answer

An advantage of using an inflation tax is that people who evade other taxes also feel the burden of an inflation tax, making it a more equitable tax collection method. The other options are not accurate as the revenue from inflation tax may not necessarily be extremely high, the collection of inflation tax may not necessarily be more organized, and inflation tax does not only affect individuals with a high income.

One Advantage of Using an Inflation Tax Over Other Methods