Final answer:
Policymakers disagree about taxation effects due to differing ideas about demand and supply elasticities, fiscal policy ideologies, and the varied impacts on income groups.
Step-by-step explanation:
U.S. policymakers disagree most often about the effects of taxation because they have different priorities and points of view. Some of the key reasons for these disagreements relate to different ideas about the elasticities of demand and supply, ideological differences, and the disparate impacts that tax policies have on various income groups.
Fiscal policy questions include considerations about how to balance the budget, how to raise revenues for government programs, and the appropriate tax rates for individuals and corporations. These matters are debated vigorously due to their profound impact on the economy.
It is important to understand that if demand is more inelastic than supply, consumers bear most of the tax burden, and similarly, if supply is more inelastic than demand, sellers bear most of the tax burden. This significantly influences political stances on taxation as lawmakers consider which income groups are most affected by tax policy changes.