A lump-sum tax charges the same amount to each taxpayer, regardless of their economic behavior or circumstances. This means that everyone pays the same fixed amount, regardless of their income or spending habits.

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A Lump-Sum Tax Is

Question 35

Multiple Choice

A lump-sum tax is:

A) a tax that charges the same amount to each taxpayer,regardless of their economic behavior or circumstances.
B) a tax that is charged once per year,in a lump sum,rather than throughout the year.
C) generally tied to spending habits,not income levels.
D) generally tied to income levels,not spending habits.

Correct Answer: