In addition to tax payments, the two other primary costs that a tax system inevitably imposes on taxpayers are
A)deadweight losses and administrative burdens.
B)deadweight losses and frustration with the political system.
C)administrative burdens and tax-preparation costs.
D)administrative burdens and the risk of punishment for failure to comply with tax laws.

Question

Quizplus · Accepted Answer

A tax system imposes deadweight losses, which are inefficiencies in the market due to taxes, and administrative burdens, which are the costs of complying with tax laws, such as record-keeping and filing taxes.

In Addition to Tax Payments, the Two Other Primary Costs