Congress recently approved a new, bigger budget for the IRS. What taxation concept evaluates the cost of administering our tax law?
A) Convenience
B) Economy
C) Certainty
D) Equity
E) None of these

Question

Quizplus · Accepted Answer

The taxation concept that evaluates the cost of administering our tax law is economy. This concept considers the cost-effectiveness of tax collection and administration, including the cost of hiring and training personnel, developing and maintaining computer systems, and conducting audits and investigations. The allocation of a bigger budget to the IRS indicates a decision to invest more resources in tax administration to improve economy.

Congress Recently Approved a New, Bigger Budget for the IRS