For Many U

Multiple Choice

For many U.S.individuals and households,replacing the federal income tax with a consumption tax would not make a major change in their tax liability - the amount they would be taxed.Which of the individuals described would be least affected by replacing the income tax with a consumption tax?

A) A person in the lowest income bracket.This person would pay little or no tax under either system.
B) A high-income individual who saves 35 percent of this income and uses his savings to purchase stocks and bonds.
C) A female head of family,with no husband present.
D) A taxpayer who puts part of her savings into a 401(k) retirement plan and in an Individual Retirement Account.