Benefits-received and ability-to-pay principles of taxation

Question

Question 1) Describe the problems created with majority voting and median-voter outcome.

Question 2) Write down four reasons given by public choice theorists for government’s inefficiency in providing public goods and services.

Question 3) Distinguish between benefits-received and ability-to-pay principles of taxation.

Question 4) Write down which taxes are progressive, proportional, and regressive.

Question 5) Explain how elasticities of demand and supply are related to incidence of a sales or excise tax.

Question 6) Describe the relationship between elasticities of demand and supply and efficiency loss of a particular tax.

Question 7) Explain probable incidence of the personal income tax, corporate income tax, sales and excise taxes, and property tax.

Question 8) Describe the U.S. structure relative to progressivity or regressivity of Federal, state, and local taxes.

Question 9) Write down conservative and liberal positions on the size of government spending and the individual’s freedom.