Abstract
The topic of discussion in this chapter is the measurement of the excess burden of taxation in the United States. Excess burden is one of the the central concepts in public finance. The concept is employed in optimal taxation, where the government meets given revenue requirements by choosing taxes so as to maximize social welfare. The closely related concept of the marginal cost of public funds is employed in the cost-benefit analysis of public expenditure; the benefits of a programme are balanced against the costs of raising tax revenue to finance it. In both applications it is necessary to measure the social cost of raising tax revenue.1
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Jorgenson, D.W., Yun, KY. (1993). The excess burden of taxation in the US. In: Heimler, A., Meulders, D. (eds) Empirical Approaches to Fiscal Policy Modelling. International Studies in Economic Modelling. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-1538-4_2
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DOI: https://doi.org/10.1007/978-94-011-1538-4_2
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