-Refer to the above data.If a lump-sum tax (the same tax amount at each level of GDP) of $40 is imposed in this economy,the tax system:

Name: -Refer to the above data.If a lump-sum tax (the same tax amount at each level of GDP)of $40 is imposed in this economy,the tax system:
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Question

-Refer to the above data.If a lump-sum tax (the same tax amount at each level of GDP)of $40 is imposed in this economy,the tax system:

Quizplus · Accepted Answer

A lump-sum tax is regressive because it takes a larger percentage of income from low-income earners than from high-income earners, as the tax amount is the same regardless of income level.

-Refer to the Above Data