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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
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