Suppose Congress passed a new tax system,such that all federal,state,and local taxes were replaced with one tax: a tax of $14,000 for every person 18 and over.This new tax system would clearly improve:

A) tax equity.
B) tax fairness.
C) tax efficiency.
D) government revenue.

Question

Hardeep Sidhu · Accepted Answer

Final Answer : C, Explanation :  The new tax system would increase tax efficiency by simplifying the tax structure and reducing the costs associated with the administration of multiple taxes. However, it would have negative impacts on tax equity and fairness, as individuals with lower incomes would be burdened with a disproportionately high tax compared to their income. It may also not necessarily increase government revenue, as individuals may be discouraged from working or may move to areas with lower tax burdens.

Suppose Congress passed a new tax system,such that all federal,state,and local taxes were replaced with one tax: a tax of $14,000 for every person 18 and over.This new tax system would clearly improve:

A) tax equity.
B) tax fairness.
C) tax efficiency.
D) government revenue.

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Learning Objectives

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Suppose Congress passed a new tax system,such that all federal,state,and local taxes were replaced with one tax: a tax of $14,000 for every person 18 and over.This new tax system would clearly improve:A) tax equity.B) tax fairness.C) tax efficiency.D) government revenue.

Definitions

Learning Objectives

Learning Objectives

Related questions

Suppose Congress passed a new tax system,such that all federal,state,and local taxes were replaced with one tax: a tax of $14,000 for every person 18 and over.This new tax system would clearly improve:

A) tax equity.
B) tax fairness.
C) tax efficiency.
D) government revenue.