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 usually rely on consumption taxes as they have a large informal sector and a relatively low level of taxable income. On the other hand, developed countries rely primarily on income taxes because they have a higher level of taxable income and a smaller informal sector.

When It Comes to the Composition of Tax Revenues from Different