In designing a tax system, policymakers have two objectives that are often conflicting. They are:
A)maximizing revenue and minimizing costs to taxpayers.
B)efficiency and equity.
C)efficiency and minimizing costs to taxpayers.
D)maximizing revenue and reducing the national debt.

Question

Quizplus · Accepted Answer

Efficiency and equity are the two primary objectives in designing a tax system. Efficiency refers to the ability of the tax system to raise revenue without causing economic distortions, while equity involves ensuring that the tax burden is distributed fairly among taxpayers.

In Designing a Tax System, Policymakers Have Two Objectives That