Which of the following would be an example of a lump-sum tax?
A)a compensated tax
B)a retail sales tax
C)a head tax
D)an admission fee

Question

Quizplus · Accepted Answer

A lump-sum tax is a fixed amount of tax imposed on each individual, regardless of their income or consumption. The head tax is the only option listed that fits this definition. A compensated tax is one where the government reimburses individuals for taxes paid, a retail sales tax is a tax on goods and services sold, and an admission fee is paid in exchange for entry into a facility or event, none of which are lump-sum taxes.

Which of the Following Would Be an Example of a Lump-Sum