October 9, 2015

Homework Help: Public Finance

Posted by Mel on Saturday, January 29, 2011 at 8:55pm.

Suppose the corporate income tax were eliminated and corporate income allocated to shareholders on a pro rata basis according to their proportion of outstanding stock. How would such a change in tax policy affect the excess burden and incidence of the tax, assuming that all forms of investment income are included in a comprehensive income tax base?

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