You have been hired as an economic advisor for a politician running for national office. the politician, at a recent campaign event, said that corporations are paying too much in taxes and are funding most of the federal government’s operations. when you speak to the politician after the event, what would you say?
"i can’t believe you said that! everyone knows that taxes on cigarettes and alcohol (excise taxes) represent the largest source of tax revenue for the federal government."
"good job! you will win this election based on your sound economic knowledge."
"we have a great deal of work to do. on the news tonight i predict there will be an expert correcting you and questioning why anyone would vote for you. individuals, through income tax and social insurance taxes, provide the bulk of government revenue."
"so close! maybe no one will catch your error. corporate and estate taxes are about equal and are tied for the largest sources of tax revenue."
"everyone knows that taxes on
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