Tax efficiency and equity question. Need help please?

Question

What does it mean to say that a tax is "efficient"? and what does it mean to say that a tax is "equitable"?

How do policymakers balance efficiency and equity?

Answer 1

A tax is efficient if by imposing it, deadweight losses (wasted resources) to society are minimized. It is equitable when imposing it redistributes wealth in a way where the gap between rich and poor becomes smaller.

Balancing both features is difficult in practice, so usually policymakers favor one more heavily than the other, which one depends on their political views. Usually leftists favor equity while those from the right tend to favor efficiency.