The nature of the tax system means that there is usually a trade-off between and ability to pay equity opportunity cost administrative costs wealth efficiency deadweight loss tax rate The principle pushes governments towards a tax system but considerations push them in the other direction. fairness ability-to-pay benefits lump-sum progressive regressive structured proportional tax rate efficiency equity wealth Incorrect. Governments must maximize resources without distorting incentives. A(n) tax, promotes economic efficiency as it does not ability-to-pay lump-sum benefits structured have a deadweight loss distort incentives incur administrative costs

The nature of the tax system means that there is usually a trade-off between Equity and Efficiency ability to pay equity opportunity cost .The ability to pay principle pushes governments towards a progressive tax system but equity considerations push them in the other direction . A(n) ability to pay tax, promotes economic efficiency as it does not distort ability-to-pay lump-sum benefits.

Explanation:

Tax equity is the tax codes and tax efficiency is the fair tax payments.In progressive tax system the high income group pays higher taxes. Through this method the inequality in the society can be reduced. This results in economic growth and reduces unemployment and increases the purchasing power of the poor people.

According to the principle the government follows a progressive tax system but with tax equity the people use tax codes to not pay certain taxes. This tax equity pushes it in the other direction.

answer; /// the above statement is (true);

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