Economists generally agree that the most important tax in the U.S.economy is the
A)investment tax.
B)sales tax.
C)property tax.
D)labor tax.

Question

Quizplus · Accepted Answer

Economists generally agree that the most important tax in the U.S. economy is the labor tax (also known as income tax or payroll tax) because it is the largest source of revenue for the federal government and significantly affects economic behavior and incentives. Other taxes such as sales tax and property tax also have important impacts, but they are generally collected by state and local governments and are not as significant at the national level. Investment tax is also important, but it is a subset of the broader labor tax as it is ultimately derived from profits generated by labor income.

Economists Generally Agree That the Most Important Tax in the U.S.economy