tax on sales of a good or service
tax is a measure of who really pays it
When does the burden of a excise tax falls on the consumers
when the price of elasticity of demand is low and the price of elasticity is high
the price elasticity of demand for gas is?
when does the burden of a excise tax fall on the producers?
when the price elasticity of demand is high and the price elasticity of supply is low
amount of tax people are required to pay per unit of whatever is being taxed
An excise tax drives what and in between what?
wedge. equal to the amount of the tax between the price received by producers an the price paid by consumers
the resources used by government to collect tax
what is the total inefficiency caused by a tax?
sum of deadweight loss and administrative costs
benefits principal of tax fairness
those who befit from public spending bear the burden of the tax that pays for that spending
lump sum tax
tax that is the same for everyone regardless of any actions people take
tax that depends on a persons income from wages and investments
tax that depends on earnings an employer pays to an employee
tax that depends on value of good
tax that depends on firm's profits
tax that depends on someones wealth
takes a larger share of income of high-income taxpayers than low payers
takes a smaller share of the income of high income taxpayers than low income taxpayer
marginal tax rate
% of an increase in income that is taxed