With a Lump-Sum Tax,the Average Tax Rate for High Income

Multiple Choice

With a lump-sum tax,the average tax rate for high income taxpayers will be

A) the same as the average tax rate for low income taxpayers.
B) lower than the average tax rate for low income taxpayers.
C) higher than the average tax rate for high income taxpayers.
D) Any of the above could be true under a regressive tax system.