An example of a selectively rewarding tax system is

Question

Quizplus · Accepted Answer

Taxing the sale of a personal residence is not a part of a selectively rewarding tax system, and the remaining choices all involve some form of selective rewards. High marginal tax rates can discourage work and investment, so they are not a reward. Taxing personal income but not wealth disproportionately affects those who earn income from work and investments rather than inheritances, making it a selective reward for those with inherited wealth. A graduated sales tax rate rewards those who consume less and penalizes those who consume more, making it a selective reward for those who choose to consume less. Therefore, the only choice that is not a selective reward is B, no tax on the sale of a personal residence.

An Example of a Selectively Rewarding Tax System Is