If transfer payments are included when evaluating tax burdens, then the average tax rate of the poorest quintile of taxpayers would be approximately
A)negative 30 percent.
B)negative 10 percent.
C)positive 1 percent.
D)positive 8 percent.

Question

Quizplus · Accepted Answer

Transfer payments, such as welfare and social security, often exceed the taxes paid by the poorest quintile, resulting in a negative average tax rate.

If Transfer Payments Are Included When Evaluating Tax Burdens, Then