Chapter 1, Problem 11DQ

In terms of tax policy, what do the following mean? a. Revenue neutrality. b. Sunset provision. c. Indexation.

Based solely on the definitions in the chapter, is the sales tax a proportional, regressive, or progressive tax? Explain, and state how the tax might be viewed differently.

What source is used to determine income tax expense, and what source is used to determine income tax paid?