Question

Situation One:

• Assumption: Each citizen should contribute according to their means; the wealthy should pay more than they get; and the poor should get more than they pay
• Assumption: Higher tax rates will allow greater investment in human and physical capital without driving up the national debt
• Assumption: Standards of living may decline for the wealthy considerably, and will increase for the poor slightly
• Economic Status: This is a lower middle-class, manufacturing worker who works an hourly union job at a large business

What would this person most likely see as the problem the US faces with the current tax rates?

The wealthy don’t pay enough
		The poor pay too much
		The wealthy pay too much
		The poor don’t pay enough

What is most likely a social objective the US should achieve through changes in tax rates?

		Greater individual freedom
		A more fair distribution of wealth
		Greater levels of economic growth

Answer 1

1. Option 1. The wealthy don't pay enough

Explanation: The person is most likely to assume that the rich is not paying enough taxes.

2. A more fair distribution of wealth

Explanation: The person is more likely to believe that changes in the tax system would make the wealth distribution fairer.