Question

Joe says that "An increase in the federal personal income tax lowers households' disposable income." Tim argues that "Taxes on cigarettes should be increased because smoking causes health issues." We can conclude that:

A. Joe's statement is normative, but Tim's statement is positive.
B. Both statements are normative.
C. Both statements are positive.
D. Tim's statement is normative, but Joe's statement is positive.

Answer 1

Joe's statement is positive, but Tim's statement is normative.

Step-by-step explanation:

Joe's statement is positive because it describes a cause-and-effect relationship between an increase in the federal personal income tax and a decrease in households' disposable income. Tim's statement is normative because it expresses an opinion and suggests a course of action based on a value judgment.

Taxes on household income refer to the various taxes that individuals and families are required to pay on the income they earn. The specific types and rates of taxes can vary widely depending on the country, state or region, and local tax laws.