Joe and Fred are economists.Joe thinks that the wealthiest 10% of the US population should be taxed a rate higher than the rest of society because they can better afford it.Fred thinks that everyone should be taxed at the same rate because that is the fairest scenario and the wealthy should not be penalized for their success.In this example,Joe and Fred
A)disagree about the validity of a positive theory.
B)have different normative views about tax policy.
C)must both be incorrect because tax policy is never that simple.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

Joe and Fred are expressing normative views about tax policy, which means they are expressing their opinions on what should happen rather than describing what is currently happening (positive theory). Joe believes in progressive taxation, while Fred believes in a flat tax rate. This is a normative debate about the fairness and equity of different tax policies.

Joe and Fred Are Economists