Policymakers consider two main objectives when designing a taxation system:
A)revenue and debt reduction
B)equity and efficiency
C)revenue and expenditures
D)expenditures and efficiency

Question

Quizplus · Accepted Answer

Policymakers aim for equity and efficiency in taxation systems to ensure fairness among taxpayers and to promote economic growth through efficient allocation of resources. Revenue and debt reduction, revenue and expenditures, and expenditures and efficiency are also important factors in tax design, but equity and efficiency are the two main objectives.

Policymakers Consider Two Main Objectives When Designing a Taxation System