No tax can lead the economy to higher levels of efficiency.

Question

Quizplus · Accepted Answer

While eliminating taxes may initially lead to increased economic activity, it is unlikely to result in sustained or long-term growth as taxes fund essential public goods and services such as infrastructure, education, and healthcare that are necessary for a functioning economy. Additionally, without taxes, the government loses a key source of revenue for managing the economy, which can lead to unsustainable budget deficits and inflation.

No Tax Can Lead the Economy to Higher Levels of Efficiency