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optimal tax
1. given the constraint in a minimal amount of tax revenues should increase, the optimal tax system will minimize the distortions they cause. 2. the existence of externalities, optimal taxation (or subsidy) is that that would internalize the impact so that the optimal decision would be made.
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- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Economy
- Category: International economics
- Company: University of Michigan
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