Why
Government Is the Problem | Hoover Institution
The
more taxes the more the deadweight loss in the economy.
Deadweight
loss is the amount of reduction of benefits to suppliers and consumers above
the amount collected in taxes.
Before
tax suppliers get $10 benefit, consumers get $10 benefit, and government gets
$0 tax revenue.
After
tax suppliers get $7 benefit, consumers get $7 benefit, and government gets $2
tax revenue, with $4 deadweight loss.
Increased
benefits to suppliers = more and higher paying jobs.
Increased
benefits to consumers = lower prices
When
in doubt Republicans want smaller government with lower taxes and less
deadweight loss.
When
in doubt Democrats want bigger government with higher taxes and more deadweight
loss.
Since this is common knowledge must be much enjoyment of sadism and masochism going on.
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