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Scenario 20-1 Suppose That a Society Is Made Up of Five Families

Question 206

Multiple Choice

Scenario 20-1
Suppose that a society is made up of five families whose incomes are as follows:
$120,000;$90,000;$30,000;$30,000;and $18,000.
The federal government is considering two potential income tax plans:
Plan A is a negative income tax plan where the taxes owed equal 1/3 of income minus $20,000.
Plan B is a two-tiered plan where the poverty line is $35,000;families earning over $35,000 pay 10% of their income in taxes,and families earning less than $35,000 pay no income tax.
-Raising total utility is the prime objective of which political philosophy?


A) Utilitarianism.
B) Liberalism.
C) Libertarianism.
D) None of the above is correct.

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