You Are Trying to Design a Tax System That Will

Multiple Choice

You are trying to design a tax system that will simultaneously achieve both of the following goals: 1) a person with no income would pay no taxes, and 2) a high-income person would pay a higher fraction of income in taxes than a low-income person. Which of the following statements is correct?

A) A lump-sum tax would achieve the second goal but not the first.
B) A regressive tax would achieve the second goal but not the first.
C) A progressive tax could achieve both goals.
D) A proportional tax could achieve the second goal but not the first.