What is part of the administrative burden of a tax associated with
A)the money people pay to the government in taxes
B)reducing the size of the market because of the tax
C)the time taxpayers spend filling out tax forms
D)the cost of administering programs that use tax revenue

Question

Quizplus · Accepted Answer

The time taxpayers spend filling out tax forms is a significant part of the administrative burden of a tax. This includes gathering information, calculating deductions, filling out forms correctly, and understanding tax laws and regulations. This burden can be particularly difficult for small business owners and individuals with complex financial situations.

Answer: D
 The cost of administering programs that use tax revenue is another significant part of the administrative burden of a tax. Government agencies must dedicate resources to tracking tax revenue, auditing taxpayers, and dispersing funds to programs and services. This can involve hiring additional staff, implementing complex systems for tracking and reporting, and addressing fraud and misuse of funds. These costs can be significant, particularly if there are multiple programs using tax revenue.

What Is Part of the Administrative Burden of a Tax