How much does it cost to tax a dollar of revenue away from the private sector and transfer it to the government to finance a government program?

a. one dollar
b. less than one dollar because the administration of and compliance with the tax laws creates jobs for people
c. more than a dollar because collection of the taxes requires resources that would otherwise be available for private sector production
d. more than a dollar because of the excess burden resulting from the elimination of productive exchanges by the taxes
e. Both c and d are correct.


E

Economics

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Economics

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Economics