Question

In designing a tax system, policymakers have two objectives that are often conflicting. They are a. maximizing revenue and minimizing costs to taxpayers. b. efficiency and minimizing costs to taxpayers. c. efficiency and equity. d. maximizing revenue and reducing the national debt.

Answer 1

Answer:

C. Efficiency and equity.

Explanation:

In designing a tax system, their are many factors that can easily stand out to be hindrances seen to be present; here it could be the policymakers, law enforcement agencies, the financial institutes etc. But in the case above, the main focus is seen to be on the policymakers.

Here, there are to main objectives that are seen and observed according to research to be the two main factors that are conflicting between policymakers which are their efficiency and also their equity. Therefore, to easily set the public and private investment, government taps tax revenues.