Many economists believe that the U.S. tax system would be made more efficient if the basis of taxation were changed so that people paid taxes, more so than they do now, based on their
A)saving rather than their income.
B)spending rather than their income.
C)income rather than their wealth.
D)wealth rather than their spending.

Question

Quizplus · Accepted Answer

Shifting the tax basis to spending rather than income is believed to encourage saving and investment, leading to more efficient economic outcomes. This approach, known as a consumption tax, is thought to be less distortive than income taxation.

Many Economists Believe That the U