(a) Discuss the nature of public goods, both pure and impure, and detail how these types...
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(a) Discuss the nature of public goods, both pure and impure, and detail how these types of goods might be provided. (b) Consider a proposal, aimed at raising revenue to fund provision of a public good, that involves an increase in the GST (consumption tax) from 10 to 12%. Discuss the efficiency and equity trade-offs associated with such a proposal. Contrast this with the case of raising the marginal tax rate for those earning over $180,000 per annum from 47% to 60%. (a) Discuss the nature of public goods, both pure and impure, and detail how these types of goods might be provided. (b) Consider a proposal, aimed at raising revenue to fund provision of a public good, that involves an increase in the GST (consumption tax) from 10 to 12%. Discuss the efficiency and equity trade-offs associated with such a proposal. Contrast this with the case of raising the marginal tax rate for those earning over $180,000 per annum from 47% to 60%.
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a Public goods are non ex clud able and non rival rous This means that once the good is provided eve... View the full answer
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
Posted Date:
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