Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A tax that is paid only once and is a fixed amount
B
A tax that varies based on income
C
A tax that is charged on a percentage of sales
D
A tax that is levied on property value
Understanding the Answer
Let's break down why this is correct
Answer
A lump-sum tax is a fixed amount of money that everyone has to pay, regardless of their income or financial situation. This means that whether you earn a little or a lot, you will pay the same set amount in taxes. For example, if the government decides that everyone should pay $100 in taxes each year, then everyone, no matter their wealth, would pay that same $100. The idea behind a lump-sum tax is that it’s simple and easy to collect, but it can be seen as unfair because it can take a bigger percentage of income from those who earn less. So, while it’s straightforward, it raises questions about fairness and how it affects different people.
Detailed Explanation
A lump-sum tax is a fixed amount you pay just once. Other options are incorrect because Some people think this type of tax changes with income; This option suggests the tax is based on sales percentages.
Key Concepts
fixed amount
Topic
Lump-Sum Taxes Explained
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.