In the context of economics, what was the primary purpose of the poll tax?

• A. To raise government revenue through a fixed tax on individuals
• B. To tax goods and services based on their value
• C. To encourage saving and investment by reducing income taxes
• D. To redistribute wealth from the rich to the poor

Answer: (A)

Verified step by step guidance

1. Understand the concept of a poll tax: it is a fixed amount of tax levied on every individual regardless of their income or wealth.
2. Recognize that the primary purpose of a poll tax historically was to generate government revenue by charging a uniform tax amount per person.
3. Differentiate the poll tax from other types of taxes such as value-based taxes on goods and services (like sales tax) or income taxes that vary with earnings.
4. Note that the poll tax does not aim to encourage saving or investment, nor is it designed to redistribute wealth, since it charges everyone the same fixed amount.
5. Conclude that the main economic purpose of the poll tax is to raise government revenue through a fixed tax on individuals.