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• Explain what is meant by tax efficiency
• Compare the excess burden of different taxes using
indifference curves
• Determine the magnitude of excess burden using the
consumer surplus concept
• Explain the meaning of administrative efficiency and
how it can be achieved
• Show what is meant by tax evasion and how to
reduce it
• Define tax flexibility.
• Excess burden/welfare cost/deadweight loss
– Measures loss of benefits to consumers & producers
• Indifference curve
• Consumer surplus
• Lump sum tax
• General tax.
• Selective taxes
• Tax neutrality
• Optimal taxation.
• Simplification
• Level of literacy
• Efficiency and expertise of tax administration
• Withhold at source
• Community morality
• Political will to enforce tax laws
• Certain and transparent.
Pe5e chapter 11 v1.0

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Pe5e chapter 11 v1.0

  • 1.
  • 2. • Explain what is meant by tax efficiency • Compare the excess burden of different taxes using indifference curves • Determine the magnitude of excess burden using the consumer surplus concept • Explain the meaning of administrative efficiency and how it can be achieved • Show what is meant by tax evasion and how to reduce it • Define tax flexibility.
  • 3. • Excess burden/welfare cost/deadweight loss – Measures loss of benefits to consumers & producers • Indifference curve • Consumer surplus • Lump sum tax • General tax.
  • 4.
  • 5. • Selective taxes • Tax neutrality • Optimal taxation.
  • 6.
  • 7.
  • 8.
  • 9.
  • 10. • Simplification • Level of literacy • Efficiency and expertise of tax administration • Withhold at source • Community morality • Political will to enforce tax laws • Certain and transparent.