Final answer:
Three broad areas of consideration regarding the impact and structure of the tax system include economic considerations, social considerations, and equity considerations. option 1,2,3.
Step-by-step explanation:
Three broad areas of consideration regarding the impact and structure of the tax system include:
- Economic considerations
- Social considerations
- Equity considerations
1) Economic considerations: Tax systems are designed to generate revenue for the government, which can then be used to fund programs and services. The economic impact of taxes includes how they affect productivity, growth, consumer behavior, and resource allocation.
2) Social considerations: Taxes can have social implications, such as incentivizing or discouraging certain behaviors. For example, sin taxes are imposed on socially undesirable products like tobacco. Taxes can also be used to promote social welfare programs and reduce income inequality.
3) Equity considerations: Tax systems aim to achieve fairness and equity. This involves ensuring that those who benefit from taxes pay in proportion to their benefits and those with higher incomes bear a greater burden. Equity considerations also include addressing issues of tax evasion and avoidance.