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?

Question

(1 point)
Responses

Fairness
Fairness

Adequacy
Adequacy

Administrative burden
Administrative burden

Transparency

Answer 1

This is an example of Transparency. Rhianna's ability to understand how the tax system works, learn about tax deductions, and see how her tax funds are used indicates that the system provides clear and accessible information about tax processes and allocations.