A tax of 24 percent on the use of cellular phones this is


Question: Which of the following is likely to impose a large excess burden?

a. A tax on land.

b. A tax of 24 percent on the use of cellular phones. (This is the approximate sum of federal and state tax rates in California, New York, and Florida.)

c. A subsidy for investment in "high-tech" companies.

d. A tax on soda bought in a cup or glass but not bought in a bottle or can. (Such a tax exists in Chicago.)

e. A 10-cent tax on a deck of cards that contains no more than 54 cards. (Such a tax exists in Alabama.)

f. A tax on blueberries. (Such a tax exists in Maine.)

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Finance Basics: A tax of 24 percent on the use of cellular phones this is
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