1. "Tax evasion is a victimless crime, because tax evasion
increases economic efficiency." Is this statement true or false?
Explain.
a. Would this statement be true if there were a way to force all
taxpayers to be honest? Explain.
Definition of economic efficiency: state of the world in which
you can't make a person better off without making someone else
worse off.
In your own words, briefly explain the difference between tax
avoidance and tax evasion. Give an example of each. (Do not use the
examples in the lecture slides, think of your
own.)
Then, think of one way that you personally avoid paying tax. Tell
us about your method of tax avoidance. (150 words)
What is the difference between tax evasion and tax avoidance?
Think about a particular tax that you wish you didn't have to pay.
What are some ways you could evade the tax? What are some ways you
could avoid paying the tax?