When it comes to the composition of tax revenues from different sources,
A)developing countries derive the largest portion of their revenue from income taxes and developed countries from consumption taxes.
B)developing countries derive the largest portion of their revenue from consumption taxes and developed countries from income taxes.
C)both developing countries and developed countries derive the largest portion of their revenue from income taxes.
D) both developing countries and developed countries derive the largest portion of their revenue from consumption taxes.

Question

Quizplus · Accepted Answer

Developing countries tend to rely more heavily on consumption taxes such as value-added tax (VAT), while developed countries rely more on income taxes. This is because consumption taxes are easier to administer and enforce in developing countries, where there may be informal sectors where income may not be reported accurately. Developed countries tend to have more formalized tax systems and greater compliance with income tax reporting.

When It Comes to the Composition of Tax Revenues from Different