In the spring of 1993, President Clinton proposed an energy tax.At one point in the congressional review of the proposal there was discussion of various exemptions for farmers, truckers, etc.One plan was to dye fuel different colors to better track the appropriate tax on the user of the fuel.Economists would label these exemptions
A)loopholes.
B)economically efficient.
C)obviously fair.
D)all of the above.

Question

Quizplus · Accepted Answer

Economists would label these exemptions as loopholes because they are exceptions to the proposed energy tax that can be exploited by certain groups to avoid paying the tax. While some may argue that these exemptions are economically efficient or obviously fair, they still create disparities in the tax system and can be seen as unfair to those who do not qualify for the exemptions.

In the Spring of 1993, President Clinton Proposed an Energy