Which of the following taxes do you think would cause the larger deadweight loss? Why?(a) a poll tax or a sales tax;(b) a sales tax on both services and goods or a sales tax only on goods;(c) an income tax only on interest and dividends or an income tax on income from all sources;(d) a tax on soft drinks or a tax on all beverages

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Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter4: Demand And Demand: Applications And Extensions

Section: Chapter Questions

Problem 13CQ

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Which of the following taxes do you think would cause the larger deadweight loss? Why?
(a) a poll tax or a sales tax;
(b) a sales tax on both services and goods or a sales tax only on goods;
(c) an income tax only on interest and dividends or an income tax on income from all sources;
(d) a tax on soft drinks or a tax on all beverages

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