A taxpayer should prefer to pay a $100 implicit tax rather than a $100 explicit tax.

Name: A taxpayer should prefer to pay a $100 implicit tax rather than a $100 explicit tax.
Brand: Quizplus
Rating: 4.8 (43 reviews)

Question

Quizplus · Accepted Answer

A taxpayer would prefer to pay an explicit tax over an implicit tax because an explicit tax is transparent and the taxpayer is aware of the amount being paid. On the other hand, an implicit tax is hidden and the taxpayer may not even be aware that they are being taxed.

A Taxpayer Should Prefer to Pay a $100 Implicit Tax