The efficiency of a tax system could be measured by observing

Question

Quizplus · Accepted Answer

The amount of tax revenues relative to the amount of government spending reflects the efficiency of a tax system. If a tax system generates enough revenue to cover government spending needs without being excessively burdensome on taxpayers, it could be considered efficient. The other options are not reliable measures of tax system efficiency. The costs imposed on taxpayers, for example, may not reflect the benefits that they receive from the government. The equal distribution of the tax burden may not be practical or fair, and taxpayers' happiness may or may not be a good indicator of the effectiveness of a tax system. Lastly, basing taxes on benefits received may be difficult to measure and implement fairly.

The Efficiency of a Tax System Could Be Measured by Observing