Which of the following is not an advantage of a lump-sum tax in comparison to other types of taxes?
A)It would not cause deadweight loss.
B)It imposes a minimal administrative burden on taxpayers.
C)It is more equitable.
D)It is more efficient.

Question

Quizplus · Accepted Answer

A lump-sum tax would not cause deadweight loss, imposes a minimal administrative burden on taxpayers, and is more efficient compared to other types of taxes. However, it is not necessarily more equitable as it imposes the same burden on all taxpayers regardless of their ability to pay. This could be considered regressive and unfair to those with lower incomes.

Which of the Following Is Not an Advantage of a Lump-Sum