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Tax equity and efficiency in context of public finance.
Tax efficiency has three aspects.
The first involves the administration and compliance costs of taxes. Tax efficiency is concerned with the convenience and certainty of a tax to the taxpayer, and with the cost of collection and compliance to the taxing unit. An efficient tax system would not impose excess cost to the taxpayer in the payment of the tax and would be collected and enforced at the lowest possible costs.
Administrative costs vary, of course, among individual taxes. Some types of taxes are more costly to administer than others. The cost of collecting and enforc…
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