The Ideal Tax Should Not Only Raise Revenue Efficiently but Also

question 49

True/False

The ideal tax should not only raise revenue efficiently but also have as few negative effects on economic behavior as possible.

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Definitions:

Excise Tax

A tax imposed on specific goods, services, and activities, such as gasoline, tobacco, and alcohol, often used to discourage their use and generate revenue.

Personal Income Tax

Tax imposed on individuals based on their income, including wages, salaries, and investment income.

Trade Deficit

A condition in which a nation's expenditures on imported goods and services surpass its income from exports, leading to a trade deficit.

Trade Deficit

A situation that occurs when a country's imports of goods and services exceed its exports.