Ineffiecient subsidy in terms of transfer efficiency
Problem: Is the federal income tax exemption of interest on state-local debt an inefficient subsidy in terms of "transfer efficiency"? What are the arguements for and against it being an ineffiecient subsidy in terms of "transfer efficiency"?
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Calculate the arithmetic spectrum over this BDD and show the corresponding ACDD.
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Why is it argued that the federal income tax exemption of interest on state-local debt is an escape from progressivity for the rich?
What are the arguements for and against it being an ineffiecient subsidy in terms of "transfer efficiency"?
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