Economics · Taxation
The principle of tax neutrality holds that:
- 1All of these
- 2The most efficient taxes are broad-based taxes that do not distort economic decisions✓
- 3People should bear tax burden in proportion to benefits received from government expenditures
- 4People should bear tax burden in line with their ability to pay
Correct answer
The most efficient taxes are broad-based taxes that do not distort economic decisions
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