When a tax is based on the difference between the market value of the taxpayer's assets and liabilities,it is called
A) a difference tax.
B) a wedge tax.
C) a personal net worth tax.
D) an implied liability tax.

Question

Quizplus · Accepted Answer

This tax is known as a personal net worth tax as it is based on the taxpayer's net worth, which is the difference between their assets and liabilities. None of the other options accurately describe this type of tax.

When a Tax Is Based on the Difference Between the Market