Question

Main purpose or taxes is to

A. generate revenue for funding government programs
b. reduce the chances of inflation
c. create jobs
d. discourage use of certain goods and services

Answer 1

The primary purpose of taxation is to raise revenue to meet huge public expenditure. Most governmental activities must be financed by taxation. But it is not the only goal. In other words, taxation policy has some non-revenue objectives. so the answer is A.