A CBO study estimated that the excess burden from the corporate income tax ________ of the revenues raised by the tax. This estimate would make the corporate income tax ________ imposed by the federal government.
A) could equal more than half; one of the most inefficient taxes
B) equals about 25 percent; one of the most efficient taxes
C) equals less than 3 percent; the most efficient tax
D) equals more than 90 percent; the most inefficient tax

Question

Quizplus · Accepted Answer

The excess burden from the corporate income tax, which could equal more than half of the revenues raised by the tax, indicates a high level of inefficiency, making it one of the most inefficient taxes imposed by the federal government.

A CBO Study Estimated That the Excess Burden from the Corporate