Discuss carefully the following quotation: It is reasonable to assume . . . that business can pass

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Discuss carefully the following quotation: "It is reasonable to assume . . . that business can pass along the full value of the [value-added] tax to final consumers. But if [it is assumed that] businesses have the power to raise prices a dollar for each dollar they pay in value-added taxes, then it should also [be] assume[d] businesses can similarly raise prices against every dollar they now pay in payroll and corporate income taxes" [Cockburn and Pollin, 1992, p. A15].

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Public Finance

ISBN: 9780073511283

8th Edition

Authors: Harvey Rosen, Ted Gayer

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