Which of the following is not a major criticism of the single-tax movement?
A) It is impractical because most income payments are a mixture of interest, rent, wages, and profits.
B) It is inefficient because the land-rent tax will distort the use of land resources, thereby preventing allocative efficiency.
C) It is unfair because there are other "unearned" incomes besides land rent, such as capital-gains income.
D) It is inadequate because current levels of government spending are too big to be sufficiently funded by rent tax alone.

Question

Quizplus · Accepted Answer

The other three options are all major criticisms of the single-tax movement. Option A highlights the difficulty in accurately determining the portion of income that is derived solely from land rent. Option C points out that the single-tax is only focused on one type of unearned income, leaving others untaxed. Option D recognizes that the amount of revenue generated from a land rent tax alone may not be sufficient to cover all government expenditures. Option B, however, is not a major criticism of the single-tax movement, as it argues that the imposition of the land-rent tax would lead to a distortion of resource allocation, preventing the attainment of allocative efficiency.

Which of the Following Is Not a Major Criticism of the Single-Tax