What type of revenue system derives equal shares from several major taxes?

Study for the IAAO Assessment Administration Specialist (AAS) exam. Engage with flashcards and multiple choice questions, each offering hints and detailed explanations. Prepare thoroughly for your certification!

A balanced revenue system is characterized by deriving equal shares from several major taxes, ensuring a stable and equitable approach to revenue generation. This system aims to combine different types of taxes in a way that they contribute to the overall revenue without overly relying on one source. By doing so, it reduces volatility and the economic burden on taxpayers, while creating a more consistent flow of revenue for governments.

In this context, the balanced system enhances fairness among taxpayers, as it does not disproportionately favor one income group over another. This equitable sharing implies that various taxes contribute equally, which can help avoid the pitfalls associated with over-reliance on any single source of revenue.

While the progressive, regressive, and proportional systems refer to how tax rates change related to income levels or taxpayer ability, none of these describes the balance achieved through a mix of various taxes contributing equally. Therefore, the balanced system is the most accurate descriptor of a revenue structure deriving equal shares from several major taxes.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy