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The government is finding a new way to collect tax revenue of T in a society that has two goods, X and Y and one
- The government is finding a new way to collect tax revenue of T in a society that has two goods, X and Y and one person, John. There are two proposals on the table: 1) impose a per-unit sales tax "t" on X; or 2) impose a lump-sum tax on John's income I. Suppose both proposals will be able to raise the proposed tax revenue T, which way is better for John?
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