Tax wedge is the difference between tax induced price paid by customer and the tax amount

Name: Tax wedge is the difference between tax induced price paid by customer and the tax amount
Brand: Quizplus
Rating: 4.8 (51 reviews)

Question

Quizplus · Accepted Answer

The tax wedge is actually the difference between what workers take home in earnings and what it costs to employ them, essentially measuring the gap between an employee's cost to the employer and the employee's net income after taxes, not the difference between tax-induced price paid by customers and the tax amount.

Tax Wedge Is the Difference Between Tax Induced Price Paid