Question

TULE TUL. MULTI 21 NUV-2019 Fall Torm U... Question Completion Status: QUESTION 26 As tax laws become more complex compliance costs are likely to decrease the government will collect more tax revenue tax evasion and avoidance will decrease the administrative burden of taxes will increase QUESTION 27 If the government imposes a $3000 tax on everyone, the tax would be: an income tax a consumption tax alump-sum tax a marginal tax QUESTION 28 Which of these tax systems does not allow for vertical equity different treatment of different people) proportional tax progressive tax regressive tax lump sum tax QUESTION 29 When a tax is justified on the basis that taxpayers receive specific government services, th is considered a horizontally equitable burden is mind satisfies the benefits principle is considered vertically equitable QUESTION 30 The argument that each person should pay taxes according to how well the individual can shoulder the burden the ability to pay principle the equity principle the benefits principle MacBook Pro

Answer 1

1. Tax evasion and avoidance will decrease (as tax structure becomes complex to understand and manipulate)

2. Lump sum tax (as it is a flat tax amount irrespective of income levels)

3. Lump sum tax (as tax is not related to income levels)

4. Satisfies the benefits principle

5. Ability to pay principle