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01 Feb 2021, 13:21
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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
65%
(hard)
Question Stats:
58% (02:18) correct
42%
(02:26)
wrong
based on 267
sessions
History
Date
Time
Result
Not Attempted Yet
The graduated income tax is the most progressive form of tax because people who make less money pay a lower percentage of their earnings in taxes, while those who earn more pay a higher percentage. The sales tax is more regressive because it is collected when people spend money rather than earn it. Since the same percentage tax is collected from everyone, regardless of income, and because people who make less money must spend a larger percentage of their income on necessities, the effective sales tax rate that people pay actually increases as they earn less money. Therefore, in order to be fair to all of its citizens, this state should increase income tax rates and eliminate the sales tax.
The conclusion drawn above is based on the assumption that
(A) a progressive tax is one that collects more money from people who make more money.
(B) a flat income tax would be fairer to all taxpayers because everyone would pay the same rate regardless of income.
(C) a higher sales tax rate actually encourages people to save more of their income because they aren’t taxed until they spend the money.
(D) a regressive tax hits poor people the hardest.
(E) sales taxes are collected on all purchases, including necessities such as food and clothing.
The conclusion drawn above is based on the assumption that
(A) a progressive tax is one that collects more money from people who make more money.
(B) a flat income tax would be fairer to all taxpayers because everyone would pay the same rate regardless of income.
(C) a higher sales tax rate actually encourages people to save more of their income because they aren’t taxed until they spend the money.
(D) a regressive tax hits poor people the hardest.
(E) sales taxes are collected on all purchases, including necessities such as food and clothing.
10 Feb 2021, 08:18
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how is negating E, destroying the conclusion??
Posted from my mobile device
Posted from my mobile device
10 Feb 2021, 14:16
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Gknight5603
I chose D, but now I understood that E is correct because if salex tax was to be different for example very small percentage on necessary goods then people with less income would not be paying a high percentage of their income in taxes
