What is NOT an advantage of a lump-sum tax
A)It would not cause a deadweight loss.
B)It imposes a minimal administrative burden on taxpayers.
C)It is more equitable.
D)It is more efficient.

Question

Quizplus · Accepted Answer

While a lump-sum tax is efficient and does not cause a deadweight loss, it is not more equitable than other tax systems. In fact, it can be argued that a lump-sum tax places a greater burden on low-income taxpayers compared to high-income taxpayers, making it less equitable overall. Additionally, a lump-sum tax may not be politically feasible as it is often seen as regressive and unfair.

What Is NOT an Advantage of a Lump-Sum Tax