How is the benefit from a tax measured
A)by how much the public gains from the government spending the tax revenue
B)by the cost of collecting the tax
C)by the interest saved because the government did not borrow the funds
D)by the government's surplus, which is tax revenue minus government expenditures

Question

Quizplus · Accepted Answer

The benefit from a tax is typically measured by how much the public gains from the government spending the tax revenue. This can include things like funding public services, improving infrastructure, or implementing social programs. Other factors such as the cost of collecting the tax or the interest saved because the government did not have to borrow the funds may also be considered, but the primary measure of benefit is typically the public good achieved through government spending. The government's surplus (Option D) is not necessarily an indicator of benefit, as it only refers to the difference between tax revenue and government expenditures, and does not necessarily reflect how effective or useful those expenditures were in creating benefits for the public.

How Is the Benefit from a Tax Measured