Which of the Following Explains One Difference Between a Consumption

Multiple Choice

Which of the following explains one difference between a consumption tax and an income tax?

A) An income tax is a regressive tax; a consumption tax is a progressive tax.
B) Under a consumption tax,households pay taxes only on the part of income they spend; under an income tax,households pay taxes on all income earned.
C) Under an income tax,present consumption is taxed more heavily than future consumption; under a consumption tax,future consumption is taxed more heavily than present consumption.
D) Savings are taxed more heavily under a consumption tax than under an income tax.