economici incidence: a tax application just tax the cows
same as taxing anyone tax consumption two tpes of sale taxes
one that tax consumer one tax the supplier salestax the one buy show up on the reipts
excise tax
won't show up the gas tax shoot up and send it to the county
it make the price higher sales tax: any economic changes that impact buyers shift down exactly by the tax amount for per unit tax has two prices the new demand curve prices and the after tax prices slope we get less tax revenue and does go by the same amount of tax dollar u pay has nothing to do wti hthe cost of the tax tax collection is just transfer tax invite the pacman to take a bite
rip out 0.25 millions in equilibirum the prices = the costs so no one is disatassfied
when pac man in town preent transaction tat owuld hapenig that otherwise would have 0.6 joy and tax is 1 dollar
DWL
couldh ave it for free and we let it go the dead weight loss is 35 percent of the tax revenue we raise taxes very inefficent irs are leaches on economic stand point
you r not producing anythign in an economic standpoint create problem by having those workers employed and hard to get rid of spend half a billion dollrs in tax compliances more employed than the top 5 fortne copanies combine cost of taxatio nis the scarafice can't tax the rih or the poor sellers will change behavior no matter what you do the buyer is paying the tax buyer is paying the more amount of taxes economic of incidence simply of who have options demand curve is more steeper than suppliers than consumer is bearing the burden
and vise versa is the elastiit that dictate who pay tax the stuff that don't go away
efficent tax at both curve is inelastic head tax is more efficient fims has options and workers don't ask firms for vacatioin or benefits you pay for it yourself.
firms is not paying for it workers apy everything in the labor market office hour: