The concept of tax sufficiency:
A) suggests the need for tax forecasting.
B) suggests that a government should estimate how taxpayers will respond to changes in the current tax structure.
C) suggests that a government should consider the income and substitution effects when changing tax rates.
D) All of the choices are correct.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

Tax sufficiency suggests the need for tax forecasting, estimating how taxpayers will respond to changes in the current tax structure, and considering the income and substitution effects when changing tax rates. Therefore, all of the choices are correct.

The Concept of Tax Sufficiency