If the income tax rate is 20 per cent and the tax rate on consumption expenditure is 15 per cent, then the tax wedge is

Name: If the income tax rate is 20 per cent and the tax rate on consumption expenditure is 15 per cent, then the tax wedge is
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Question

Quizplus · Accepted Answer

The tax wedge is the total tax burden on an economic activity, which in this case is the sum of the income tax rate (20%) and the consumption tax rate (15%), totaling 35%.

If the Income Tax Rate Is 20 Per Cent and the Tax