How does a flat tax differ from a regressive tax?
a. Flat taxes are illegal in the United States but are widely used in Europe.
b. Flat taxes are attached only to the sale of goods and services.
c. Flat taxes tax all entities at the same rate as a proportion of income, whereas with regressive taxes the rate changes according to income level.
d. Flat taxes bring in far less revenue than do regressive taxes.
e. Flat taxes are very popular with Americans, whereas regressive taxes are not.
ANS: C
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