SHORT ANSWER

President Biden has proposed to raise the federal tax rate on corporate

income from 21% to 28%. The Wall Street Journal warns that "A 28%

tax rate will cost companies, but not equally." Explain how the concept

of elasticity can help us understand which sorts of companies will be

more impacted by the tax increase. Be sure to describe who ends up

paying the bulk of the tax, and the relationship between taxation and

deadweight loss.