Asked by Julia Herbst on May 19, 2024
Verified
Lump-sum taxes are equitable but not efficient.
Lump-Sum Taxes
Taxes with a fixed amount, not dependent on the taxpayer's income level or economic activity, making them neither progressive nor regressive.
Equitable
Characterized by fairness and impartiality; the fair distribution of resources and opportunities.
Efficient
Describes a process that achieves its goals with the least waste of time and effort.
- Obtain familiarity with the merits and particulars of diverse tax frameworks, encompassing consumption taxes and lump-sum taxes.
- Review the essential elements of taxation and their application to enhancing tax equity and efficiency.
Verified Answer
GD
Giselle DelgadoMay 19, 2024
Final Answer :
False
Explanation :
Lump-sum taxes are considered efficient because they do not distort economic decisions or behavior, but they are not equitable since they do not take into account the taxpayer's ability to pay.
Learning Objectives
- Obtain familiarity with the merits and particulars of diverse tax frameworks, encompassing consumption taxes and lump-sum taxes.
- Review the essential elements of taxation and their application to enhancing tax equity and efficiency.
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