In which case will workers bear a larger share of the tax burden, when taxes are imposed in a single locality or when taxes are imposed throughout an entire state? Why will your answer differ between the short run and the long run?
Answer to relevant QuestionsThe city of Malaise is considering a 10% tax on the revenues of all hotels/motels inside the city limits. Although not completely different from hotels and motels in the nearby suburbs, the ones in Malaise have a distinct ...Bob’s Bees is a small boutique honey manufacturer in Massachusetts. Bob’s neighbor is Jon’s Jams. The more honey Bob produces, the more jam Jon is able to produce; that is, there is a positive production ...Gruber and Krueger (1991)1 found that mandated increases in the costs of workers’ compensation benefits in the 1970s and 1980s led to substantial wage offsets for workers. Some of the wage reductions they found were even ...Over time, more women have become the primary (or sole) wage earners in their households. How does this fact complicate the empirical analysis of the effects of taxation on women’s labor supply? The National Bureau of Economic Research’s TAXSIM model (http://www.nber.org/ ~taxsim/taxsim-calc8/) allows you to calculate tax liabilities for a given individual in different years. Go to this Web site and fill in the ...
Post your question