The burden of a tax is
A)the amount of revenue that the government raises from the tax.
B)what it would cost in alternative tax revenue to provide the same level of service.
C)greater as the total revenue from the tax decreases.
D)the amount the taxpayer would have to be given to be just as well off in the presence of the tax as in its absence.

Question

Quizplus · Accepted Answer

The burden of a tax refers to how much the tax reduces the taxpayer's well-being. Option D accurately describes the burden of a tax by stating that it is the amount the taxpayer would have to be given to be just as well off with the tax as they would be without it. Options A, B, and C do not accurately describe the burden of a tax.

The Burden of a Tax Is