A consumption tax that replaces an income tax a) only taxes a household on the money it spends. b) discourages saving. c) would likely result in a lower level of saving than an income tax. d) ultimately taxes income twice—once when the household pays income tax and once when the household makes a purchase
A consumption tax that replaces an income tax a) only taxes a household on the money it spends. b) discourages saving. c) would likely result in a lower level of saving than an income tax. d) ultimately taxes income twice—once when the household pays income tax and once when the household makes a purchase
Chapter17: Federal Deficits, Surpluses, And The National Debt
Section17.3: Why Worry Over The National Debt?
Problem 1YTE
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A consumption tax that replaces an income tax
a) only taxes a household on the money it spends.
b) discourages saving.
c) would likely result in a lower level of saving than an income tax.
d) ultimately taxes income twice—once when the household pays income tax and once when the household makes a purchase
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