Why might people be willing to sacrifice dollars to avoid “feeling bad” about flouting tax laws? Concept introduction: A Tax is the mandatory financial charge or some other type of levy imposed upon a taxpayer (an individual or other legal firm by a government in order to fund various public expenditures. The government imposes a number of taxes and uses its proceedings to finance its social benefit programs and also finance its government expenditure. Tax avoidance refers to the legal means of reducing tax liabilities on an individual. Tax avoidance is the use of legal methods to modify an individual's financial situation to lower the amount of income tax owed to the government. This is generally accomplished by claiming the permissible deductions and credits. It is different from tax evasion as tax evasion is the failure to pay one’s tax liabilities to the government on purpose and this is considered illegal.

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Chapter 6, Problem eFCT

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Why might people be willing to sacrifice dollars to avoid “feeling bad” about flouting tax laws?

Concept introduction:

A Tax is the mandatory financial charge or some other type of levy imposed upon a taxpayer (an individual or other legal firm by a government in order to fund various public expenditures. The government imposes a number of taxes and uses its proceedings to finance its social benefit programs and also finance its government expenditure.

Tax avoidance refers to the legal means of reducing tax liabilities on an individual. Tax avoidance is the use of legal methods to modify an individual's financial situation to lower the amount of income tax owed to the government. This is generally accomplished by claiming the permissible deductions and credits.

It is different from tax evasion as tax evasion is the failure to pay one’s tax liabilities to the government on purpose and this is considered illegal.

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