Question

True/False: Policy makers must strive for an income tax system that is progressive, marriage neutral, and...

  1. True/False:
  2. Policy makers must strive for an income tax system that is progressive, marriage neutral, and based on family income.

Homework Answers

Answer #1

True

Policymakers should take into account of the individuals and the cost to them so that the tax system remains fair and equitable. By being progressive, it charges less income share of the poor which is justified. Tax should not be higher for an unmarried person, otherwise it will give incentive or disincentive to marry. Also, it should be based on family income, since a family is a unit where each member look after the other, so considering the family is important.

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