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good tax fm

good tax fm

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In the table below rank the characteristics of a good tax from 1 (most important) to 7 (least important) What makes a good tax? Characteristic Rank People should keep what they earn. Resources (money) is distributed most efficiently when people get to make those decisions instead of the government. Individuals should provide for their communities as they desire through charity. Wealthy individuals should be taxed at a higher rate because their wealth allows them to make sacrifices more easily. Taxes should be clear and easy to understand. Everyone should pay the same percentage of income as taxes to ensure fairness. Taxes need to generate enough revenue to pay for all govemment programs. Taxes should encourage favorable economic activity (production, investment, consumption, saving) Taxes should be easy for governments to collect.
Transcribed Image Text:In the table below rank the characteristics of a good tax from 1 (most important) to 7 (least important) What makes a good tax? Characteristic Rank People should keep what they earn. Resources (money) is distributed most efficiently when people get to make those decisions instead of the government. Individuals should provide for their communities as they desire through charity. Wealthy individuals should be taxed at a higher rate because their wealth allows them to make sacrifices more easily. Taxes should be clear and easy to understand. Everyone should pay the same percentage of income as taxes to ensure fairness. Taxes need to generate enough revenue to pay for all govemment programs. Taxes should encourage favorable economic activity (production, investment, consumption, saving) Taxes should be easy for governments to collect.
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