STSTEER

Identify Non-Distortionary Taxes

Picking the tax that raises revenue without a deadweight loss: a lump-sum or fixed-factor tax among distorting ones, or a per-unit tax in a market with fixed supply.

Question template

Kenji advises a city government, which needs to fund its public schools. The government is considering four taxes, each raising about the same revenue. Assume nobody moves into or out of the area because of any of these taxes, and the total amount of land is fixed. Which of these taxes creates no deadweight loss?

Use it

from datasets import load_dataset
ds = load_dataset("narunraman/steer_me", "non_distortionary_taxes")