Question

Rhianna understands that one way the government in a market economy collects taxes is by deducting earnings from her pay. On her pay stub she can see boxes with numbers that represent different tax deductions. She does a quick search and easily learns more about the tax system and how her tax funds are used. This is an example of which goal of an effective tax system?

(1 point)

Fairness


Adequacy


Administrative burden


Transparency

Answer 1

Transparency — she can see the deductions and easily learn how the tax system works, which reflects the goal that taxpayers can understand and monitor taxes.