Which of the following policies does not promote savings in an economy?
A)deferring taxes on interest earned
B)making the interest on bonds tax-free
C)establishing a program of investment tax credits
D)lowering a sales tax

Question

Quizplus · Accepted Answer

Lowering a sales tax does not promote savings as it only reduces the cost of goods and services, which may encourage spending rather than saving. The other policies mentioned in the options all provide some form of tax relief or credit, which can incentivize saving and investment.

Which of the Following Policies Does Not Promote Savings in an Economy