The total burden of a tax is the
A)absolute number of dollars an individual pays.
B)percentage of income a person pays.
C)number of dollars a person must be given after taxation to make him as well off as he was before taxation.
D)revenue lost to loopholes.

Question

Quizplus · Accepted Answer

The total burden of a tax is the number of dollars a person must be given after taxation to make him as well off as he was before taxation. This takes into account not only the actual tax paid, but also the decrease in purchasing power and other indirect effects of the tax. Therefore, option C is the correct answer.

The Total Burden of a Tax Is the