Optimal commodity taxation would
A)eliminate tax evasion in Canada.
B)put a tax on leisure time, which is currently untaxed.
C)optimize tax rates on the wealthiest Canadians.
D)have the smallest amount of excess burden possible for a given amount of tax revenue.

Question

Quizplus · Accepted Answer

Optimal commodity taxation aims to minimize the excess burden or economic inefficiency while raising a specific amount of tax revenue, ensuring that the tax system is as efficient as possible.

Optimal Commodity Taxation Would