What Does it Cost Society to Raise a Dollar of Tax Revenue? The Marginal Cost of Public Funds

Summary:
Page Title:What Does it Cost Society to Raise a Dollar of Tax Revenue? The Marginal Cost of Public Funds – C.D. Howe Institute
Article Title:What Does it Cost Society to Raise a Dollar of Tax Revenue? The Marginal Cost of Public Funds
URL:https://cdhowe.org/publication/what-does-it-cost-society-raise-dollar-tax-revenue-marginal-cost-public-funds/
Published Date:March 16, 2011
Accessed Date:February 11, 2025

Increasing corporate income tax rates is the most costly way to raise government revenues, compared to other forms of taxation, according to a study released today by the C.D. Howe Institute. In What Does it Cost Society to Raise a Dollar of Tax Revenue? The Marginal Cost of Public Funds, authors Bev Dahlby and Ergete Ferede compare the effects of higher tax rates on provinces’ corporate income tax, personal income tax and sales tax bases, and conclude that corporate income tax increases are the most costly form of tax hike.

Membership Application

Interested in becoming a Member of the C.D. Howe Institute? Please fill out the application form below and our team will be in touch with next steps. Note that Membership is subject to approval.

"*" indicates required fields

Please include a brief description, including why you’d like to become a Member.

Member Login

Not a Member yet? Visit our Membership page to learn more and apply.