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The federal tax rate on corporate income could potentially increase from 21% to 28%. There is warnings that a 28% tax rate will cost companies,
The federal tax rate on corporate income could potentially increase from 21% to 28%. There is warnings that a "28% tax rate will cost companies, but not equally." Explain how the concept of elasticity can help us understand what sort of companies will be more impacted by the tax increase. Who pays the bulk of the tax? And what is the relationship between taxation and deadweight loss?
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