Perhaps the greatest efficiency loss from a wealth tax would result from the ________ as a result of the tax.
A) disincentive to accumulate wealth
B) decrease in spending
C) decrease in charitable giving
D) increase in spending on capital

Question

Quizplus · Accepted Answer

Wealth taxes can create a disincentive to accumulate wealth because individuals might perceive that the fruits of their investments and savings will be partially taken away by the government, thus potentially reducing their motivation to generate higher levels of wealth.

Perhaps the Greatest Efficiency Loss from a Wealth Tax Would