The least inefficient taxation system is a tax system that

Question

Quizplus · Accepted Answer

Minimizing the overall excess burden is the best choice for a least inefficient taxation system because it seeks to minimize the negative impact on economic activity and efficiency. This means that the tax system aims to raise revenue without discouraging work, saving, investment, or consumption. Highly progressive taxation may be perceived as fairer, but it can also have negative effects on incentives and economic growth. Minimizing the total tax burden or maximizing tax revenues may also lead to undesirable outcomes such as tax evasion, disincentives for businesses and investors, or social unrest.

The Least Inefficient Taxation System Is a Tax System That