Tax policy typically has the goals of efficiency and equity.These goals are frequently:
A)met only by a lump-sum tax
B)consistent with the goals of vertical equity
C)unable to be both fulfilled simultaneously
D)achieved when company tax rates are very high

Question

Quizplus · Accepted Answer

Efficiency and equity often conflict in tax policy, making it challenging to fulfill both goals simultaneously. Efficiency focuses on minimizing economic distortions, while equity emphasizes fair tax burden distribution, leading to trade-offs.

Tax Policy Typically Has the Goals of Efficiency and Equity