Question

A government can use a "wealth tax" to:

• A. Increase the income tax rates for all citizens.
• B. Generate revenue from the net worth of wealthy individuals.
• C. Reduce the overall tax burden on corporations.
• D. Fund social welfare programs by taxing luxury goods.

Answer 1

Answer:

B. Generate revenue from the net worth of wealthy individuals.

• A wealth tax is a tax on an individual's net worth, including assets like property, stocks, and bonds, usually levied annually.