Which statement is an argument against a tax system that encourages savings?
A) that individuals know better that the government how much to save
B) that saving is not an important determinant of a nation's ability to produce output
C) that rich people would bear the burden of such a tax system
D) that such a tax system would increase inequality

Question

Quizplus · Accepted Answer

A tax system that encourages savings might disproportionately benefit those who have more disposable income to save, potentially increasing economic inequality. This is because wealthier individuals are more likely to have excess funds to save and thus would benefit more from any tax incentives for saving, compared to lower-income individuals who might spend a larger proportion of their income on necessities.

Which Statement Is an Argument Against a Tax System That