Asked by Kevin Nguyen on Jun 06, 2024

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One tax system is less efficient than another if it

A) places a lower tax burden on lower-income families than on higher-income families.
B) places a higher tax burden on lower-income families than on higher-income families.
C) raises the same amount of revenue at a higher cost to taxpayers.
D) raises less revenue at a lower cost to taxpayers.

Tax System

The legal framework that outlines how taxes are collected, managed, and spent by the government.

Revenue

The overall revenue produced by a corporation through its primary business of selling goods or services.

  • Understand the principles of tax efficiency and factors that contribute to efficient tax systems.
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CI
Chadrick IngramJun 11, 2024
Final Answer :
C
Explanation :
Efficiency in a tax system often refers to the cost of collecting taxes relative to the amount of revenue raised. A less efficient tax system is one that incurs a higher cost to raise the same amount of revenue, as indicated in option C.