What is the difference between an income tax and a payroll tax?
A. Income taxes are collected based on income while payroll taxes
are collected based on wealth.
B. Income taxes increase the purchasing power of the government
while payroll taxes increase the purchasing power of workers.
C. Income taxes are used for a wide variety of government activities
while payroll taxes pay for specific programs.
D. Income taxes reduce the demand for harmful goods while payroll
taxes don't affect this demand.