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What are some of the challenges the federal and state governments face in trying to implement a fair tax system?

Give at least three concrete facts to support your answer. (please don't copy other answers)

User Grantzau
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Answer:

taxation should follow the four principles of fairness, certainty, convenience and efficiency. Fairness, in that taxation should be compatible with taxpayers' conditions, including their ability to pay in line with personal and family needs.Tax administration must be free of corruption and able to address all the challenges that come its way. These challenges may involve tax collection, management of taxes and duties at borders, introduction of an effective Value Added Tax or sales tax, and administration of developing law. The primary purpose of a tax is to raise revenue for governmental activities, rather than to influence business and personal decisions. Economic growth and efficiency The tax system should not unduly impede or reduce the productive capacity of the economy.

User Manu Gupta
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