Which of the following is likely to impose a large excess burden?
a. A tax on land.
b. A subsidy for personal computers.
c. A tax of $75 on iPods, MP3 payers, and smart-phones. (An “iPod Tax” was proposed in 2010 in a private member’s bill to Parliament in Canada.)
d. A subsidy for investment in “high-tech” companies.
e. A 5 cent tax on bottled water. (Such a tax exists in Chicago.)
f. A 10 percent tax on all computer software.