Question

Judging the certainty of a tax system is best described by which of the following?

A) Considering that the system should minimize compliance and administration costs.
B) Suggesting that a tax system should be designed to facilitate the collection of tax revenue without undue hardship.
C) Considering how the tax burden should be distributed across taxpayers.
D) Considering whether tax revenues generated are adequate to meet the financial needs of the government.
E) Considering that taxpayers should be able to determine when, where, and how to calculate and pay the tax.

Answer 1

The certainty of a tax system is best described by suggesting that a tax system should be designed to facilitate the collection of tax revenue without undue hardship.

Step-by-step explanation:

Judging the certainty of a tax system is best described by option B) Suggesting that a tax system should be designed to facilitate the collection of tax revenue without undue hardship. This means that a tax system should be efficient and simple to administer, ensuring that taxes are collected without causing unnecessary burden or difficulty for taxpayers.

For example, a tax system that requires complicated calculations and extensive paperwork may discourage compliance and create administrative costs. On the other hand, a tax system that is straightforward and easy to understand promotes certainty and encourages taxpayers to comply willingly.

By considering factors such as simplicity, efficiency, and the avoidance of undue hardship, the certainty of a tax system can be assessed and improved to ensure fair and effective revenue collection.