Which of the following is true for taxes? They
A) are always administered fairly.
B) are a necessary part of living in an economy with a fair distribution of income.
C) are always administered without creating unfairness or inefficiency.
D) are an involuntary transfer of private property.
E) do not create a big tradeoff problem.

Question

Quizplus · Accepted Answer

Taxes are an involuntary transfer of private property, as individuals are required to pay taxes to the government regardless of their consent. The other options are not true for taxes. Taxes are not always administered fairly, as there may be loopholes or biases in the tax code. While taxes are necessary for government programs and services, the distribution of income may still be unfair. Tax administration may also create inefficiencies or unfairness, as seen in cases of corruption or tax evasion. Lastly, taxes do create a big tradeoff problem as they require individuals and businesses to allocate resources towards paying taxes instead of other economic activities.

Which of the Following Is True for Taxes? They