In the context of behavioural public finance, 'Tax Salience' refers to:
A. The degree to which a tax is noticed and taken into account by decision-makers
B. Only the progressivity of the tax
C. Only the administrative cost of the tax
D. Only the statutory tax rate
Answer: Option A
Solution (By JKSSB Mock Tests)
Tax salience measures how visible or noticeable a tax is to the agents who pay it; less salient taxes tend to produce smaller behavioural responses than more salient ones of equal magnitude.
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