Which statement about changing the current tax system in the U.S.to a cash-flow tax system is TRUE?

Question

Quizplus · Accepted Answer

A cash-flow tax system focuses on taxing money when it is spent rather than when it is earned. This system would incentivize savings, as taxes would be deferred until the money is spent. Therefore, it could require giving large deductions for saving, which could disproportionately benefit the richest people who have more capacity to save.

Which Statement About Changing the Current Tax System in the U.S.to