What is NOT a reason that a lump-sum tax imposes a minimal administrative burden on taxpayers
A)Everyone can easily compute the amount of tax they owe.
B)There is no benefit to hiring an accountant to do your taxes.
C)Everyone owes the same amount of tax, regardless of earnings.
D)There is no deadweight loss.

Question

Quizplus · Accepted Answer

A lump-sum tax imposes a minimal administrative burden on taxpayers because it does not require complex calculations or paperwork. Everyone owes the same amount of tax, regardless of their earnings, so there is no need for individuals to hire an accountant or spend time computing their tax liability. Additionally, since there is no change in behavior due to taxation, there is no deadweight loss associated with a lump-sum tax. However, the fact that everyone can easily compute the amount of tax they owe (Option A) and that there is no benefit to hiring an accountant (Option B) are both reasons why a lump-sum tax imposes a minimal administrative burden on taxpayers.

What Is NOT a Reason That a Lump-Sum Tax Imposes