Which of the following statements is correct?

A) Equity is more important than efficiency as a goal of the tax system.
B) Efficiency is more important than equity as a goal of the tax system.
C) Both equity and efficiency are important goals of the tax system.
D) Neither equity nor efficiency is an important goal of the tax system.

Question

Overlooked Nomore · Accepted Answer

Final Answer : C, Explanation :  Both equity and efficiency are considered important goals in the design and evaluation of tax systems. Equity ensures that the tax burden is distributed fairly among individuals, while efficiency minimizes the economic distortions caused by taxation. Balancing these goals is a key challenge in tax policy.

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