Solved

Why Are Lump-Sum Taxes Rarely Used in the Real World

Question 129

Multiple Choice
Why are lump-sum taxes rarely used in the real world
A)While lump-sum taxes have low administrative burdens, they have high deadweight losses.
B)While lump-sum taxes have low deadweight losses, they have high administrative burdens.
C)Lump-sum taxes take the same amount of money from both poor and rich taxpayers.
D)Lump-sum taxes are very inefficient.

Why are lump-sum taxes rarely used in the real world


A) While lump-sum taxes have low administrative burdens, they have high deadweight losses.
B) While lump-sum taxes have low deadweight losses, they have high administrative burdens.
C) Lump-sum taxes take the same amount of money from both poor and rich taxpayers.
D) Lump-sum taxes are very inefficient.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents