One Economics question In a paragraph or so please identify

One Economics question:

In a paragraph or so please identify and Provide your arguments on how we should reform the tax code in order to allow the governments to collect tax revenues without putting unnecessary burdens to businesses and consumers

Solution

Collection of taxes lead to rise in prices of commodities which puts a burden on both producers and consumers reducing total welfare . Firstly, tax burden depends upon the elasticity of a good . Progressive taxes on income , unit tax on consumption and production rather than a total large tax can reduce burden to certain extent . Specific taxes such as carbon tax , gives incentive for producers to produce efficiently and generate lesser carbon emissions . Such taxes can raise revenue without much burden since it has some positive effects .