Question

The following statements provide some analysis of policy regarding taxes. Categorize each statement as positive or normative.

A Taxes are to high
B. If taxes were lowered, government revenues would actually increase.
C. It is immoral for the government to redistribute money from one person to another.
D. When the government taxes the rich and gives the money to the poor, it gives the rich an incentive to hide their earnings from the government,

Answer 1

The statements are as follows:

A. Taxes are to high - Normative

B. If taxes were lowered, government revenues would actually increase - Positive

C. It is immoral for the government to redistribute money from one person to another - Normative

D. When the government taxes the rich and gives the money to the poor, it gives the rich an incentive to hide their earnings from the government - Positive