Question

[Related to Application 1.3] In 2013, the International Monetary Fund suggested that nations impose a one-time 10% tax on all accumulated individual wealth as a means to solve governments' financial problems. What kind of behaviors would this tax be likely to create? Group of answer choices This will likely incentivize people to accumulate wealth in the future. Governments will be more likely to adopt command economies. This will likely deter people from accumulating wealth in the future. Governments will be more likely to adopt market systems.[Related to Application 1.3] In 2013, the International Monetary Fund suggested that nations impose a one-time 10% tax on all accumulated individual wealth as a means to solve governments' financial problems. What kind of behaviors would this tax be likely to create? Group of answer choices This will likely incentivize people to accumulate wealth in the future. Governments will be more likely to adopt command economies. This will likely deter people from accumulating wealth in the future. Governments will be more likely to adopt market systems.

Answer 1

This will likely deter people from accumulating wealth in future.

Answer: Option 3.

Step-by-step explanation:

Taxes are the amount of money that the citizens have to pay to the government. It is obligatory in nature. And in return to these taxes, the government will provide services to the citizens of the country.

But since the citizens have to pay to the government from their own personal income, so it pinches the citizens. An additional tax on the wealth of the citizens will deter the people to save and accumulate the wealth in future and will not motivate them.