The problem of a complex tax code filled with loopholes may be overcome by proposing a complete overhaul of the entire system that lowers taxes for everyone because it _____.

Question

Quizplus · Accepted Answer

A complete overhaul of the entire tax system that lowers taxes for everyone represents a Pareto superior move as it can make everyone better off without making anyone worse off. Additionally, it does not necessarily benefit all special interests and it does not take advantage of rational ignorance.

The Problem of a Complex Tax Code Filled with Loopholes