In this chapter, look for the answers to these questions:What are the largest sources of tax revenue in the U.S.?What are the efficiency costs of taxes? How can we evaluate the equity of a tax system?1
THE DESIGN OF THE TAX SYSTEM2IntroductionLessons about taxes from earlier chapters:A tax on a good reduces the market quantity of that good.The burden of a tax is shared between buyers and sellers depending on the price elasticities of demand and supply.A tax causes a deadweight loss.
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