An efficient tax system is one that

Question

Quizplus · Accepted Answer

Option (i) is not sufficient in defining an efficient tax system because a tax system should be not only effective but also fair and simple.
Option (ii) is necessary in order to ensure that tax evasion is minimized, and the tax revenues are maximized. However, having few exemptions and deductions will make the system cumbersome and less fair for some taxpayers.
Option (iii) is crucial in making sure that the tax burden is distributed fairly among taxpayers based on their ability to pay. A progressive taxation system can help reduce income inequality.
Option (iv) is not necessary but can still be desirable, as it can reduce the costs associated with tax collection and administration. However, this option may not be feasible for some developing countries.

An Efficient Tax System Is One That