If a government simplified its tax system the likeliest result would be a decrease in
A)consumer surplus.
B)producer surplus.
C)in deadweight loss.
D)tax revenues.

Question

Quizplus · Accepted Answer

Simplifying a tax system by removing unnecessary regulations and procedures would reduce the compliance costs for taxpayers, making it easier for them to navigate the system. This would reduce the deadweight loss of the tax system, as fewer resources would be wasted in complying with the tax system. However, simplification does not necessarily mean a decrease in tax revenues.

If a Government Simplified Its Tax System the Likeliest Result