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26 Fiscal Policy - Coggle Diagram

- - - - ad2: good source of tax revenue
      - ad3: automatic stabilizers (G&T)
      - dis1: if high, ↓working effort
      - dis2: high rates, people with mortgages work harder
      - ad1: redistribution of income
      - dis3: save less
    - - ad4: customers have choices
      - ad5: tax workers in informal economy
      - ad3: hard to evade 逃税
      - ad2: reduce consumption of demerit goods
      - ad1: easy to accept
      - dis1: high rate, ↑price, ↑wage, ↑cost, ↑supply, ↑price level (inflation)
  - - - more incentive (decrease income tax)
      - Concerns about the regressive nature
      - Simple administration
  - - - Demand
        
        Elastic
        
        Consumers' tax burden> producers' tax burden
        
        Inelastic
        
        Consumers' tax burden< producers' tax burden
      - Supply
        
        Elastic
        
        Consumers' tax burden< producers' tax burden
        
        Inelastic
        
        Consumers' tax burden> producers' tax burden