What happens as tax laws become more complex
A)The administrative burden of taxes is increased.
B)Compliance costs will likely decrease.
C)The government always collects more in tax revenue.
D)The amount of tax revenue lost to tax evasion always decreases.

Question

Quizplus · Accepted Answer

As tax laws become more complex, taxpayers and tax agencies have to spend more time and resources to ensure compliance. This can lead to an increase in administrative burden, which refers to the time and cost required to comply with tax laws. Therefore, choice A is the correct answer. Choices B, C, and D are incorrect because they do not reflect the impact of complex tax laws on the administrative burden or tax compliance.

What Happens as Tax Laws Become More Complex