Which position would adam smith most likely support during a congressional debate on tax reform? a. income taxes should be decreased to the same rate for everyone. b. income taxes should be abolished and replaced with a national sales tax. c. income taxes should be increased regardless of ability to pay. d. income taxes should be reduced to a minimal level and be based on ability to pay.

D. Income taxes should be reduced to a minimal level and be based on ability to pay.

Explanation:

Adam Smith was a British-born Scottish philosopher and economist. It had as scenery for his life the troubled Century of Lights, the eighteenth century. He is the father of modern economics, and is considered the most important theorist of economic liberalism. Author of An Investigation into the Nature and Cause of the Wealth of Nations, his best known work, and which continues to be used as a reference for generations of economists, in which he sought to demonstrate that the wealth of nations resulted from the performance of individuals who, even for their own sake, promoted economic growth and technological innovation.

According to Adam Smith, a tax reform system is fair when all income taxes must be reduced to a minimum and based on ability to pay, in other words, everyone should pay taxes because they rely on direct and indirect benefits of public power, but these tributes have to be according to the capacity that each one can pay.

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