"Taxes are a necessary evil to raise revenue for the government, towards funding expenditure on 'public...

"Taxes are a necessary evil to raise revenue for the government, towards funding expenditure on 'public goods and services'. We should aim to do this in the most effective and efficient way - with the lowest marginal tax rates, and lowest distortions possible. This could be achieved by eliminating all forms of taxes on income and replacing them with a uniform tax on expenditure on goods and services instead."

Provide a critical assessment of this statement based on economic concept

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Rahul Sunny answered 2 years ago

16 MARKS "Taxes are a necessary evil to raise revenue for the government, towards funding expenditure...

16 MARKS "Taxes are a necessary evil to raise revenue for the government, towards funding expenditure on 'public goods and services'. We should aim to do this in the most effective and efficient way - with the lowest marginal tax rates, and lowest distortions possible. This could be achieved by eliminating all forms of taxes on income and replacing them with a uniform tax on expenditure on goods and services instead." Provide a critical assessment of this statement based on...

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