Chapter 11 explain what is meant by tax efficiency, compare the excess burden of different taxes using indifference curves, determine the magnitude of excess burden using the consumer surplus concept, explain the meaning of administrative efficiency and how it can be achieved, show what is meant by tax evasion and how to reduce it, define tax flexibility.
• • • • • • Explain what is meant by tax efficiency Compare the excess burden of different taxes using indifference curves Determine the magnitude of excess burden using the consumer surplus concept Explain the meaning of administrative efficiency and how it can be achieved Show what is meant by tax evasion and how to reduce it Define tax flexibility • Excess burden/welfare cost/deadweight loss – Measures loss of benefits to consumers & producers • • • • Indifference curve Consumer surplus Lump sum tax General tax • • • Selective taxes Tax neutrality Optimal taxation • • • • • • • Simplification Level of literacy Efficiency and expertise of tax administration Withhold at source Community morality Political will to enforce tax laws Certain and transparent ... Consumer surplus Lump sum tax General tax • • • Selective taxes Tax neutrality Optimal taxation • • • • • • • Simplification Level of literacy Efficiency and expertise of tax administration Withhold... Explain the meaning of administrative efficiency and how it can be achieved Show what is meant by tax evasion and how to reduce it Define tax flexibility • Excess burden/welfare cost/deadweight... by tax efficiency Compare the excess burden of different taxes using indifference curves Determine the magnitude of excess burden using the consumer surplus concept Explain the meaning of administrative