One of the ways that has been suggested to alleviate the burden of taxation on the average citizen is lowering the income tax. Explain how this move would affect the revenue stream for federal, state, and local governments in regard to income tax revenue and sales tax revenue.

Similarly, taxpayers may subtract a certain amount on their tax returns for each allowable "exemption." By lowering one's taxable income, these exemptions and deductions support the basic principle of taxing according to ability to pay. Those with high taxable incomes pay a larger percentage of their income in taxes.

Explanation:

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