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When designing a tax policy, a country should consider factors such as economic growth, equity, efficiency, and simplicity. Balancing revenue generation with the need to minimize economic distortion is crucial, as is ensuring that the tax system is equitable and does not disproportionately burden any group. Additionally, simplicity in tax compliance and administration can enhance taxpayer compliance and reduce administrative costs. Finally, the impact of tax policies on investment, savings, and consumption patterns should also be evaluated to foster a healthy economic environment.

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1w ago

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