Multiple Choice
Which of the following statements is concerned with efficiency rather than equity?
A) It is not fair to tax the income earned by the wealthy at higher rates than the poor.
B) Excise taxes on tobacco products affect low-income families the most and should be reduced.
C) Our income tax system should be more progressive than it is now.
D) Taxes cause distortions in markets and reduce social welfare.
E) The best type of income tax is a flat tax because it treats everyone the same.
Correct Answer:

Verified
Correct Answer:
Verified
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