Question

Scenario 1 The government is proposing switching from a progressive tax system, in which families pay...

Scenario 1

The government is proposing switching from a progressive tax system, in which families pay 15% of the first $40,000 earned, 30% of the next $40,000 earned, and 45% of any income over $80,000 to a tax system in which every family pays ¼ of its income regardless of how much they earn and all income redistribution is eliminated. That is, the tax revenue generated is used only for infrastructure, public administration, and national defense.

36. According to Scenario 1 which group would be most in favor of the proposed change in tax policy?

Homework Answers

Answer #1

Option B
Libertarian ideology is of the view that there should be individual liberty in the society as some rights and freedom is inherent to the human being. These rights should not be compromised by the government or even by the society.
The ideology also believes in the free market system for economic growth and advocates minimum role of the government. Libertarian views the concentration power as something not ideal for the society and so it also support lower level of taxes.

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