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If the government wants to minimize the deadweight loss of taxation, which of the following items are good candidates for an excise tax (select all that apply)? 1. emergency plumber services 2. Coca-Cola 3.insulin 4. food at restaurants

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sadddamkashmiri801

Answer:

Excise tax is applicable on items that the government don't want you to buy which includes luxurius and health injurious items. Excise taxes don't apply on food items and medicines because its unethical act by the government to increase the cost of medicines by enforcing taxes. The available options are Coca cola (harmful drink) and Emergency plumber services.

The remaining two items are not good candidate for excise tax because its use is the basic rights of people of America.

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