Evaluate the nut tax

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Question: In recent years, farmers in China have been protesting their tax treatment by the government They have many complaints, including a fee that "is collected for production of special products; like nuts, even when none are gown" [Fakholm, 1999, p. A10]. Evaluate this nut tax from the viewpoints of both optimal tax theory and hori-zontal equity.

Reference no: EM131500073

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