Category: Taxation

The reduction of tax ?

A. will have no impact on tax revenue.
B. will always reduce tax revenue regardless of the prior size of the tax
C. could increase tax revenue if the tax had been extremely high
D. causes a market to become less efficient

An efficient tax ?

A. minimizes the administrative burden form the tax
B. does all the things describe in these answers
C. raises revenue at the smallest possible cost to taxpayers.
D. minimize the deadweight loss from the tax.