ernment choose if the aim of the government is to maximise revenue

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter3: Economic Decision Makers
Section: Chapter Questions
Problem 3.11P
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please explain the questions with a drawn graph Let us consider two flat rate tax
regimes - a proportional tax and a progressive tax with a lump sum subsidy for
the low-income earners below an income threshold. a) Which tax regime should
the government choose if the aim of the government is to maximise revenue
receipts.
Transcribed Image Text:please explain the questions with a drawn graph Let us consider two flat rate tax regimes - a proportional tax and a progressive tax with a lump sum subsidy for the low-income earners below an income threshold. a) Which tax regime should the government choose if the aim of the government is to maximise revenue receipts.
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