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.
Trang 2• 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
Trang 3• Excess burden/welfare cost/deadweight loss
– Measures loss of benefits to consumers & producers
• Indifference curve
• Consumer surplus
• Lump sum tax
• General tax
Trang 5• Selective taxes
• Tax neutrality
• Optimal taxation
Trang 10• Simplification
• Level of literacy
• Efficiency and expertise of tax administration
• Withhold at source
• Community morality
• Political will to enforce tax laws
• Certain and transparent