Show that the consumer is better off with a lump-sum tax rather than a proportional tax on

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Show that the consumer is better off with a lump-sum tax rather than a proportional tax on wage income (as in question) given that either tax yields the same revenue for the government. You must use a diagram to show this.

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Macroeconomics

ISBN: 978-0132991339

5th edition

Authors: Stephen d. Williamson

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Question Posted: Dec 05, 2014 09:56 AM

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Show that the consumer is better off with a lump-sum tax rather than a proportional tax on

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Lumpsum Tax vs Proportional Tax Suppose that we start with a proportional ...View the full answer

Macroeconomics

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