Economist: A tax is effective if it raises revenue and burdens all and only those persons targeted by the tax. A tax is ineffective, however, if it does not raise revenue and it costs a significant amount of money to enforce. Which one of the following inferences is most strongly supported by the principles stated by the economist?
A: The tax on steel does not cost a significant amount of money to enforce, but it does not raise revenue either. Thus, the tax is ineffective.
B: The tax on coal burdens all of the people targeted by it, and this tax does not burden anyone who is not targeted by it. Thus, the tax is effective.
C: The tax on alcohol raises a modest amount of revenue, but it costs a significant amount of money to enforce. Thus, the tax is ineffective.
D: The tax on gasoline costs a significant amount of money to enforce. Thus, if it does not raise revenue, the tax is ineffective.
Choose A, B, C or D as your solution.
D