Answer to Question #8305 in Other Economics for ann mary

Question #8305
what is the weapon of taxation policies
Expert's answer
Tax policy is an administrative apparatus that is built to levy and collect tax, through
applying different tariff and basis taxation, in order to apply policy that has
built. Policymakers debate the nature of the tax structure they plan to implement (i.e.,
how progressive or regressive) and how they might affect individuals and businesses (i.e., tax incidence). The reason for such foitution effect, because anything that does not
change relative prices is nondistortionary. One must also consider the income effect, which for tax policy purposes often needs to be assumed to cancel out in the
aggregate. The efficiency loss is depicted on the demand curve and supply curve
diagrams as the area inside Harberger's Triangle.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question

New on Blog