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The FairTax Idea Centers on a National Sales Tax to Replace

Question 131

Multiple Choice
The FairTax idea centers on a national sales tax to replace other taxes including federal income tax.If such a flat tax were enacted, what would happen to the role of government as redistributor?

The FairTax idea centers on a national sales tax to replace other taxes including federal income tax.If such a flat tax were enacted, what would happen to the role of government as redistributor?


A) It would decrease as tax rates increased and income taxes became more progressive.
B) It would increase as tax rates decreased and income taxes became more representative.
C) It would decrease as progressive income taxes ended.
D) It would increase as regressive income taxes ended.
E) It would be largely unchanged.

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