If a tax is efficient,it will necessarily be equitable.
A) True
B) False
C) Uncertain

Question

Quizplus · Accepted Answer

Efficiency and equity are two different concepts in taxation. An efficient tax system can collect revenue with minimal economic impact, while an equitable tax system redistributes income or wealth to promote fairness. It is possible for a tax to be efficient but not equitable, such as a flat tax that taxes individuals at the same rate regardless of income. Therefore, the statement is false.

If a Tax Is Efficient,it Will Necessarily Be Equitable