The ideal tax should not only raise revenue efficiently but also have as few negative effects on economic behavior as possible.

Question

Quizplus · Accepted Answer

The statement is true. An ideal tax system should be designed in such a way that it minimizes the negative effects on economic behavior while still raising revenue efficiently. This is because if a tax has too many negative effects on economic behavior, it can lead to reduced economic growth, hinder innovation, and discourage productivity. Therefore, a tax system that strikes a balance between raising revenue and minimizing negative economic effects is desirable.

The Ideal Tax Should Not Only Raise Revenue Efficiently but Also