MAKING OF A NEW NATION 1776 1800
THE WHISKEY REBELLION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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they saw themselves disconnected from the union
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it hurt the small farmers the most
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whiskey was their source of income
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all of the above
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Detailed explanation-1: -Some of the causes of tax evasion are the existence of tax havens, higher tax rates, lack of integrity on the part of the citizens, presence of informal economy, lack of simplicity in the tax legislations, inefficiency of tax administration etc.
Detailed explanation-2: -Tax evasion is one of the major challenges for the taxation system in India. The amount of money evaded generates an illegal hoard which is called black money. Assessees submit false claims stating lesser profits or turnover. Expenses, receipts, sales figures and books are manipulated.
Detailed explanation-3: -There are two main effects of a tax: a fall in the quantity traded and a diversion of revenue to the government.
Detailed explanation-4: -Of course the major expenditure of Government has to be incurred on National Defence, Infrastructure Developments etc. Taxes are used by the government for carrying out various welfare schemes including employment programmes.