Suppose fairness is defined as those with the highest incomes can afford to pay a greater proportion of their income in taxes. Then which of the following taxation systems would be consistent with this notion of fairness?
A) A true flax tax.
B) A flat sales tax on consumption purchases.
C) A progressive tax on income.
D) A fixed federal tax of $5,000 that everyone pays regardless of income status.

Question

Quizplus · Accepted Answer

A progressive tax on income would be consistent with the notion of fairness that those with higher incomes should pay a greater proportion of their income in taxes. This is because as income increases, the tax rate also increases, resulting in a higher overall tax burden for those with higher incomes. A true flat tax (A) and a flat sales tax (B) would not take income into account and would therefore not be consistent with this notion of fairness. A fixed federal tax (D) would also not take income into account and would be the same for all individuals regardless of income level, which would not be consistent with the notion of fairness that those with higher incomes should pay more in taxes.

Suppose Fairness Is Defined as Those with the Highest Incomes