Optimal Commodity Taxation Case 1-All goods can be taxed In this case, the inability to impose a lump sum tax is irrelevant The government can effectively take away a lump sum amount through equal taxes on all commodities(including leisure) · No excess burden5 Optimal Commodity Taxation: Case 1 – All goods can be taxed • In this case, the inability to impose a lump sum tax is irrelevant. • The government can effectively take away a lump sum amount through equal taxes on all commodities (including leisure). • No excess burden