Lump-sum taxes are equitable but not efficient.

Lump-Sum Taxes

Taxes with a fixed amount, not dependent on the taxpayer's income level or economic activity, making them neither progressive nor regressive.

Equitable

Characterized by fairness and impartiality; the fair distribution of resources and opportunities.

Efficient

Describes a process that achieves its goals with the least waste of time and effort.

Obtain familiarity with the merits and particulars of diverse tax frameworks, encompassing consumption taxes and lump-sum taxes.
Review the essential elements of taxation and their application to enhancing tax equity and efficiency.

Verified Answer

Giselle DelgadoMay 19, 2024

Final Answer :

False

Explanation :

Lump-sum taxes are considered efficient because they do not distort economic decisions or behavior, but they are not equitable since they do not take into account the taxpayer's ability to pay.

Learning Objectives

Obtain familiarity with the merits and particulars of diverse tax frameworks, encompassing consumption taxes and lump-sum taxes.
Review the essential elements of taxation and their application to enhancing tax equity and efficiency.

Lump-sum taxes are equitable but not efficient.

Definitions

Learning Objectives

Learning Objectives

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