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In order to host the Winter Olympic games, the city of Vancouver incurred a large debt, which will have to be repaid over time. Reflecting
In order to host the Winter Olympic games, the city of Vancouver incurred a large debt, which will have to be repaid over time. Reflecting on this fact, one Vancouver resident complained, The average guy is going to see his taxes increase. Assume that Vancouver does raise taxes to pay for the debt. Who is going to bear the burden of these future taxes? [Hint: Take advantage of the theory of tax capitalization.]
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