Which of the following is false?
A) a lump-sum tax does not depend on any action taken by a consumer.
B) in practice, no taxes are lump-sum.
C) lump-sum taxes are realistic.
D) all taxes have distorting effects on the behavior of economic agents.

Question

Quizplus · Accepted Answer

Lump-sum taxes are not realistic as they are difficult to implement and often require significant administrative costs. They are also not equitable as they place the same burden on all taxpayers regardless of their ability to pay.

Which of the Following Is False