Which of the followings is not true in case of factor taxes?
1
A tax on capital income tends to be progressive, whereas a tax on wage income tends to be regressive.
2
Like product taxes, in case of factor taxes, the distribution of the burden between sellers and buyers depends on elasticities of demand and supply.
3
The factor taxes reduce the gross rate of return to the factor.
4
A tax on executives or professional income may be shifted to consumer.