In a balanced revenue system, the revenue is derived equally from how many major taxes?

In a balanced revenue system, the revenue is generally derived equally from several major taxes to ensure stability and reduce reliance on any single source of funding. This diversification helps prevent fluctuations in revenue caused by economic changes, ensuring that the government can maintain consistent funding for services and infrastructure.

A well-structured balanced revenue system typically includes a mix of property taxes, sales taxes, income taxes, and other tax sources. This variety allows for a more resilient fiscal environment, as changes in one tax base can be offset by the performance of others, aiding in effective budget management and economic stability.

Relying on just one or two major taxes could expose the system to risks if those revenue streams experience downturns. Therefore, having several major taxes contributes to a more robust and effective revenue collection process, which is essential for a well-functioning government.