Explain for each of the following whether the tax imposed is likely to have a small or large excess burden. (Hint: think about elastic ties and their relation to excess burden.)
a. A tax on land.
b. A tax on height.
c. A subsidy for investment in “high-tech” companies. (Assume that it will be easy for companies to label themselves as “high-tech”.)
d. The tax on tattoos imposed by the state of Rhode Island.