Asked by salvador borja on Apr 29, 2024
Verified
(Last Word) Which of the following statements about taxes and government spending is correct?
A) Despite the overall progressive tax system,government expenditures disproportionately favor the rich and result in a system that is slightly regressive.
B) The progressive tax system is almost perfectly offset by regressive expenditures,making the overall system proportional.
C) The regressive tax system is offset by expenditures directed toward lower-income households,making the overall system proportional.
D) The overall system of taxes and spending is progressive,as over $1 trillion per year gets transferred from upper-income households to lower- and middle-income households.
Progressive Tax System
A taxation system in which the tax rate increases as the taxable amount increases, leading to higher earners paying a larger percentage of their income in taxes than lower earners.
Government Expenditures
The total amount of money spent by the government on various services and projects, including healthcare, education, and infrastructure.
- Examine the function of the government in supplying public services and mitigating income disparity via tax policies and fiscal expenditures.
Verified Answer
RS
Rouheen SheikhMay 03, 2024
Final Answer :
D
Explanation :
According to research and analysis, the overall system of taxes and spending is progressive. This is because over $1 trillion per year gets transferred from upper-income households to lower- and middle-income households. Therefore, option D is correct.
Learning Objectives
- Examine the function of the government in supplying public services and mitigating income disparity via tax policies and fiscal expenditures.