In England, the Thatcher government substituted a “poll tax” for the local property tax. People took strong exception to the tax, which is basically a head or “lump sum” tax. The principle of taxation such a tax violates is called
A. the benefits principle.
B. the excess burden principle.
C. the ability-to-pay principle.
D. the constitutional principle.
Answer: C
You might also like to view...
Suppose a concert by Lady Gaga and a basketball game played by the L.A. Lakers are substitutes, then which of the following is TRUE?
A) If the price of a ticket to a Lakers game increases, then the demand for Lady Gaga tickets will fall. B) If the price of a ticket to a Lakers game decreases, the quantity of Lakers tickets demanded will increase. C) If the price of a ticket to a Lakers game increases, then the demand for Lady Gaga tickets will remain unchanged. D) The price of a ticket to a Lakers game will always equal the price of a ticket to a Lady Gaga concert.
In the short run, a contractionary fiscal policy would cause
a. the AD curve to shift to the right b. equilibrium real GDP to decrease and the price level to increase c. the AS curve to shift left d. the economy to slide along the AD curve e. equilibrium GDP and the price level to fall