If the government proposed a one-time tax of 25% on accumulated wealth, this would likely
A) reduce the incentive for individuals to accumulate wealth.
B) increase the incentive for individuals to accumulate wealth.
C) have no impact on individual accumulation of wealth since it is a one-time tax.
D) All of the above are equally likely to happen.

Question

Quizplus · Accepted Answer

A one-time tax of 25% on accumulated wealth would likely reduce the incentive for individuals to accumulate wealth, as it decreases the net benefit of saving and investing large amounts of money.

If the Government Proposed a One-Time Tax of 25% on Accumulated