An efficient tax system has low:
A)rates of marginal tax
B)deadweight losses
C)rates of average tax
D)transfers between the Commonwealth government and the States

Question

Quizplus · Accepted Answer

Deadweight losses are the economic costs associated with taxation, such as reduced economic activity and efficiency. A low deadweight loss indicates that the tax system is efficient because it is not unnecessarily hindering economic activity.

An Efficient Tax System Has Low