Kroft, Kory; Laliberté, Jean-William; Leal Vizcaíno, René - 2022
This paper studies commodity taxation in a model featuring heterogeneous consumers, imperfect competition, and tax … salience. We derive new formulas for the incidence and marginal excess burden of commodity taxation, and we find that tax … on consumers is increasing in tax salience, and the marginal excess burden of taxation is larger than standard formulas …