The resources that a taxpayer devotes to complying with the tax laws are a type of
A)marginal tax.
B)administrative burden.
C)deadweight loss.
D)Both b and c are correct.

Question

Quizplus · Accepted Answer

Administrative burden refers to the time and money spent by taxpayers to comply with tax laws, while deadweight loss refers to the economic inefficiencies caused by taxes. Therefore, both options b and c are correct. Marginal tax, on the other hand, refers to the tax rate applied to each additional unit of income earned by a taxpayer.

The Resources That a Taxpayer Devotes to Complying with the Tax