Microeconomics (Christopher T.S. Ragan) (z-lib.org)

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System? Assessing how the entire tax system affects the distribution of income is complicated by two factors. First, the progres ...

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Taxation and Efficiency The tax system influences the allocation of resources by altering such things as the relative prices of ...

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The Two Burdens of Taxation A tax normally does two things. It takes money from the taxpayers, and it changes their behaviour. T ...

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Figure 18-2 Direct and Excess Burdens of an Excise Tax The allocative inefficiency of a tax is measured by its excess burden. Th ...

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is no allocative inefficiency; the cost of raising $10 a month for the provincial government is just the $10 a month that you pa ...

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Figure 18-3 Direct and Excess Burdens of an Income Tax supply any given amount of labour services only if the pre-tax wage is in ...

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creates an excess burden. As with the case of excise taxes, the revenue collected by the tax understates the total cost of the t ...