4.4 Marginal Excess Tax Burden.pdf - Marginal Excess Tax Burden Estimating Costs Estimating Costs The Marginal Excess Tax Burden Excess Tax Burden \u2013

4.4 Marginal Excess Tax Burden.pdf - Marginal Excess Tax...

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Marginal Excess Tax Burden Estimating Costs Estimating Costs
The Marginal Excess Tax Burden Excess Tax Burden – the deadweight loss resulting from a tax. Marginal Excess Tax Burden (METB) – the change in deadweight loss resulting from raising an additional dollar of tax revenue. The size of the METB depends on the tax and the behavioral response to that tax. Estimating Costs
Including the METB in Welfare Estimates Estimating the change in social surplus: ΔSS = ΔCS + ΔPS + (1+METB)∙ΔGS Boardman “Although an estimate of 23 center per dollar appears to provide a reasonable value for

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