Asked by Bimala Sharma Acharya on May 18, 2024
Verified
In designing a tax system, policymakers have two objectives that are often conflicting. They are:
A) maximizing revenue and minimizing costs to taxpayers.
B) efficiency and equity.
C) efficiency and minimizing costs to taxpayers.
D) maximizing revenue and reducing the national debt.
Efficiency
The optimal allocation of resources to maximize the production of goods and services.
Equity
The value of an asset after deducting what is owed on it, or the ownership interest in a company as held by shareholders.
- Examine the effectiveness and fairness of taxation systems and their impacts on various social and economic groups.
- Comprehend the fundamentals of tax structure, including the balance between effectiveness and fairness.
Verified Answer
NO
Naomi OjokojoMay 21, 2024
Final Answer :
B
Explanation :
Efficiency and equity are the two primary objectives in designing a tax system. Efficiency refers to the ability of the tax system to raise revenue without causing economic distortions, while equity involves ensuring that the tax burden is distributed fairly among taxpayers.
Learning Objectives
- Examine the effectiveness and fairness of taxation systems and their impacts on various social and economic groups.
- Comprehend the fundamentals of tax structure, including the balance between effectiveness and fairness.
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