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The best currently available measure of the standard of living in a country is
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- To eliminate the deficit (and halt the growth of the net public debt), a politician suggests that "we should tax the rich." The politician makes a simple arithmetic calculation in which he applies the higher tax rate to the total income reported by "the rich" in a previous year. He says that this is how much the government could receive from increasing taxes on "the rich." This argument has been proved wrong because of all the following statements, exceptA.that increasing the marginal tax rate on the "rich" has so far produced unimpressive results.B.that the "rich" will have more incentive to incorporate themselves and pay a lower corporate profit tax rate.C.that the "rich" will use a deferred-compensation plan to shift income to future years when their tax rates may be lower.D.that taxing "the rich," since they have higher earnings, is the answer to solving the problem of a growing deficit.
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