Which of the following statements about taxes is NOT true? A regressive taxis a form of proportional tax A progressive tax reflects a belief in the "ability to pay"principle. A flat taxis a form of proportional tax A regressive tax does not reflect the "ability to pay"principle When government spending exceeds government revenue, the must immediate result is __ an increase in unemployment a decrease in income tax rates a federal budget deficit a federal budget surplus

## Step 1<br />The first part of the question is about the types of taxes and their principles. A regressive tax is a tax that takes a larger percentage of income from low-income earners than from high-income earners. It is not a form of proportional tax, which means it does not take the same percentage of income from all income levels. Therefore, the statement "A regressive tax is a form of proportional tax" is not true.<br /><br />## Step 2<br />The second part of the question is about the consequences of government spending exceeding government revenue. When government spending exceeds government revenue, it means the government is spending more money than it is earning. This situation is known as a federal budget deficit.