Asked by Julia Herbst on Apr 29, 2024
Verified
An efficient tax system is one that imposes small deadweight losses and small administrative burdens.
Efficient Tax System
An efficient tax system is one that collects government revenues with minimal economic distortion, allowing for effective allocation of resources without significantly hampering growth.
Deadweight Losses
Economic inefficiencies resulting from market distortions, typically leading to a loss of total societal welfare.
Administrative Burdens
The costs and obligations associated with compliance to rules, regulations, and administrative procedures for businesses and individuals.
- Acquire insight into the concepts of tax efficiency, evasion, avoidance, and equity.
- Acknowledge the significance of administrative burden and deadweight losses in a tax system.
Verified Answer
PK
Pouya KouzehkananiMay 03, 2024
Final Answer :
True
Explanation :
An efficient tax system aims to collect government revenue with minimal economic distortion and operating costs, hence minimizing deadweight losses and administrative burdens.
Learning Objectives
- Acquire insight into the concepts of tax efficiency, evasion, avoidance, and equity.
- Acknowledge the significance of administrative burden and deadweight losses in a tax system.