Question

1) Some people advocate for a lump-sum tax on income, under which people would all pay the same absolute tax, and there would be no deductions or extra paperwork. One advantage of a tax of this type is that it would: change consumer behavior. • improve the fairness of the tax. • reduce the administrative burden of the tax. • increase tax revenues. 2) A disadvantage of a tax of this type is that: • it is unfair. • it is proportional • it is regressive. 3) The greatest percentage of U.S. tax revenues come from: • income taxes. • payroll taxes. • corporate income taxes. • Income and payroll taxes contribute about equal shares. _? 1) 40% 2) 4) The percentage of that tax is approximately__ 8.5% 3) 60% 4) 25%

Answer 1

Step-by-step explanation:

A tax of this type would reduce the administrative burden of the tax. By implementing a lump-sum tax on income with no deductions or extra paperwork, the administrative process becomes simpler and more efficient.

A disadvantage of a tax of this type is that it is regressive. A lump-sum tax, where everyone pays the same absolute amount regardless of their income level, places a heavier burden on lower-income individuals compared to higher-income individuals. Therefore, it is considered regressive in terms of its impact on different income groups.

The greatest percentage of U.S. tax revenues come from income taxes. Income taxes contribute the largest share to the overall tax revenues in the United States.

The percentage of that tax is approximately 40%. Income taxes contribute about 40% of the total U.S. tax revenues.