In order to construct a more complete picture of the economic burden of government across income classes, economists usually
A)include tax payments as well as transfer payments received.
B)focus only on the tax payments of wealthy tax payers.
C)limit their analysis to taxes based on the ability-to-pay principle.
D)focus their analysis on issues of tax efficiency.

Question

Quizplus · Accepted Answer

Including both tax payments and transfer payments received provides a more complete picture of the economic burden of government across income classes. Simply focusing on the tax payments of wealthy taxpayers or limiting analysis to taxes based on the ability-to-pay principle would not provide as comprehensive of an understanding of the economic burden across income classes. Focusing solely on tax efficiency would also not provide a complete picture of the economic burden, as it does not consider the impact of transfer payments on different income classes.

In Order to Construct a More Complete Picture of the Economic