Many economists believe that the U.S. tax system would be made more efficient if the basis of taxation were changed so that people paid taxes, more so than they do now, based on their

A) saving rather than their income.
B) spending rather than their income.
C) income rather than their wealth.
D) wealth rather than their spending.

U.S. Tax System

The structured collection of taxes imposed by the federal, state, and local governments in the United States, including income, sales, and property taxes.

Taxation Basis

Refers to the underlying system or set of rules used to determine how much tax an individual or entity owes.

Saving

The process of setting aside a portion of current income for future use, typically in a bank account or other investment vehicle.