A 20 percent, flat-rate tax on labor income is imposed.Show how the excess burden of the tax could be estimated.In your answer list all the data you would require to make your estimate.Under what circumstance will workers not bear the full incidence of a tax on labor income? Under what circum?stances will an increase in the tax rate decrease tax revenue?

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The Answer of A 20 percent, flat-rate tax on labor income is imposed.Show how the excess burden of the tax could be estimated.In your answer list all the data you would require to make your estimate.Under what circumstance will workers not bear the full incidence of a tax on labor income? Under what circum?stances will an increase in the tax rate decrease tax revenue?

A 20 Percent, Flat-Rate Tax on Labor Income Is Imposed