PRC-3 · Chapter 16 · Question 19 of 20
Which canon of taxation dictates that a tax should cost the government very little to administer and collect relative to the revenue it generates?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Canon of economy
Explanation
The canon of economy states that the administrative cost of collecting the tax should be as low as possible to maximize net revenue for the state.
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