Discuss four characteristics of a good tax system.

1.	Discuss four characteristics of a good tax system.
Answer» Economic efficiency: The tax should not prevent the efficient allocation of resources. Administrative simplicity: The tax should be easy and inexpensive to administer. Flexibility: The tax system should respond easily to changes in economic conditions. Transparency: Individuals should be able to ascertain their tax burdens so that burdens can be politically tailored to what society considers desirable. Fairness: The tax system should be fair in its treatment of different individuals.

Answer»

Economic efficiency: The tax should not prevent the efficient allocation of resources.

Administrative simplicity: The tax should be easy and inexpensive to administer.

Flexibility: The tax system should respond easily to changes in economic conditions.

Transparency: Individuals should be able to ascertain their tax burdens so that burdens can be politically tailored to what society considers desirable.

Fairness: The tax system should be fair in its treatment of different individuals.

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