The Design of the Tax System — Efficiency, Equity, and Tax Policy Explained | Chapter 12 of Principles of Microeconomics
The Design of the Tax System — Efficiency, Equity, and Tax Policy Explained | Chapter 12 of Principles of Microeconomics What makes a good tax system, and how do economists weigh efficiency against equity? Chapter 12 of Principles of Microeconomics examines the core goals and trade-offs of tax policy. This summary provides a clear guide to the structure of the U.S. tax system, the main principles of tax design, and the challenges of balancing fairness with minimizing economic distortions. 🎥 Watch the full chapter summary below and subscribe to Last Minute Lecture for more textbook breakdowns and study guides! Tax Structure and the U.S. System Taxes are crucial for funding public goods and services, from national defense to infrastructure. The U.S. tax system includes personal income taxes, payroll taxes, and corporate income taxes. Each is designed to raise revenue while attempting to limit inefficiency and ensure fairness. Principles of Tax Design: Efficie...