Taxes for the most part are efficient because they increase the incentive to work and align the values that buyers and sellers place on goods and services.

Question

Quizplus · Accepted Answer

Taxes can create disincentives to work and can distort values of goods and services by increasing prices and decreasing demand. However, some taxes can be efficient if they are designed well and targeted towards specific goals, such as incentivizing environmentally friendly behavior or reducing income inequality.

Taxes for the Most Part Are Efficient Because They Increase