ECONOMICS
MONEY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Simple
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Efficient
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Equal
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Overbearing
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Detailed explanation-1: -A good tax system is one which has predominantly good taxes and which fulfills most of the canons of taxation: it must yield sufficient revenue, but cause minimum aggregate sacrifice to the people and minimum obstruction to incentives for production.
Detailed explanation-2: -A good tax system should meet five basic conditions: fairness, adequacy, simplicity, transparency, and administrative ease.
Detailed explanation-3: -Regressive taxes may seem fair because they are imposed on everyone regardless of income, but they hurt low-income earners more than others.
Detailed explanation-4: -The main characteristic features of a tax are as follows: (1) A tax is a compulsory payment to be paid by the citizens who are liable to pay it. Hence, refusal to pay a tax is a punishable offence. (2) There is no direct quid-pro-quo between the tax payers and the public authority.