129. (Last Word) Which of the following statements about taxes and government spending is correct?

Question

Quizplus · Accepted Answer

There is some debate among economists and policymakers about the overall fairness of the tax and spending system. However, it is generally agreed that the progressive tax system is partially offset by regressive expenditures, which means that the overall system is slightly regressive. Despite this, many government programs and policies are specifically designed to transfer resources from higher-income households to lower- and middle-income households, which makes the overall system significantly progressive. For example, programs like Social Security, Medicaid, and the Earned Income Tax Credit provide significant benefits to low- and moderate-income households, while higher-income households pay a larger share of the costs through the progressive tax system. Therefore, statement D is correct.

129 (Last Word) Which of the Following Statements About Taxes