Lump-sum taxes are rarely used in the real world because:
A)lump-sum taxes have low administrative burdens but high deadweight losses
B)lump-sum taxes have low deadweight losses but high administrative burdens
C)poor taxpayers must pay the same level of tax as rich taxpayers
D)lump-sum taxes have both high deadweight losses and high administrative burdens

Question

Quizplus · Accepted Answer

Lump-sum taxes require every taxpayer to pay the same amount of tax regardless of their income level, which can be considered unfair and regressive. In reality, tax systems are designed to be progressive, meaning that those with higher incomes pay a greater proportion of their income in taxes. This is achieved through income taxes, which are proportional to income and therefore more equitable.

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