Macroeconomics 11th Edition by Michael Parkin

تمرين 30

Use the following news clip to work the Problem
Paul Ryan's Roadmap Business Tax
Paul Ryan has proposed replacing the corporate income tax, which is among the highest in the industrialized world, with what he calls a business consumption tax but what is in effect a tax of a firm's value added. He proposes that this tax be set at 8.5 percent, which is half that of the value added taxes in the rest of the industrialized world.
Explain the potential supply-side effects of Paul Ryan's tax plan.