Economists play an important role in the complex debates over tax policy by
A)identifying efficiency as the most important goal of tax policy.
B)identifying equity as the most important goal of tax policy.
C)shedding light on the tradeoff between efficiency and equity in tax policy.
D)None of the above is correct.

Question

Quizplus · Accepted Answer

Economists help to inform tax policy debates by analyzing the tradeoff between efficiency and equity. They recognize that tax policies can have both positive and negative impacts on economic growth, resource allocation, and income distribution. By providing insights into how different tax policies can affect these outcomes, economists can inform policymakers about the potential costs and benefits of various tax proposals. While efficiency and equity are both important goals of tax policy, economists can help to inform decisions about how to balance these objectives in practice.

Economists Play an Important Role in the Complex Debates Over