A government has a policy under which income tax is charged only after the first $20\,000$ of income has been earned. What would make this government policy more fair?
- ADecreasing the threshold for paying income tax to $10\,000$ for all taxpayers.
- BIntegrating the tax and welfare systems by introducing a negative income tax.
- CIntroducing universal benefits that are available to all citizens irrespective of wealth.
- DMeans testing all benefits so that they remain the same even if real incomes fall.