Tax capacity and tax effort are the same thing.

Name: Tax capacity and tax effort are the same thing.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Tax capacity refers to the maximum amount of revenue a government can theoretically raise through taxation, considering its economic, demographic, and social structures. Tax effort, on the other hand, measures the extent to which a government actually exploits its tax capacity, reflecting the difference between potential and actual tax collections.

Tax Capacity and Tax Effort Are the Same Thing