4 concepts
Comparing Marginal and Average Tax Rates
Taxes can be evaluated based on an average impact or a marginal impact and can be categorized as progressive, regressive, or proportional.
Tax Incidence, Efficiency, and Fairness
Tax incidence is the analysis of the effect of a particular tax on the distribution of economic welfare.
Tax Incidence and Elasticity
Tax incidence or tax burden does not depend on where the revenue is collected, but on the price elasticity of demand and price elasticity of supply.
Trading off Equity and Efficiency
Taxes may be considered equitable if they are administered in accordance with the definition of either horizontal or vertical equity.