Lump-Sum Tax
Definition
A fixed tax not based on income, consumption, or behavior. Doesn't distort decisions — efficient but politically unpopular.
Example
A flat $500-per-adult head tax would be a lump-sum tax.
A fixed tax not based on income, consumption, or behavior. Doesn't distort decisions — efficient but politically unpopular.
A flat $500-per-adult head tax would be a lump-sum tax.