Mostly summarized from Gregory Mankiw’s Principles of Economics, 5th Ed.
PART 4 The Economics of the Public Sector
Chapter 12 of 36 The Design of the Tax System 
Section 2 of 22
…
In 1789 and for the next hundred years the average American paid less than five percent of his income in taxes.
Today, all taxes taken are about a third of the average American's income, including
· personal income taxes
· payroll taxes
· sales taxes
· property taxes
· corporate income taxes
Taxes are required because government must provide various goods and services.
…
Restated from Chapter 1, the Ten Principles of Economics:
1: people face trade-offs
2: the cost of something is what you give up to get it
3: rational people think at the margin
4: people respond to incentives
5: trade can make everyone better off
6: markets are usually a good way to organize economic activity
7: governments can sometimes improve market outcomes
8: a country's standard of living depends on its ability to produce goods and services
9: prices rise when the government issues too much money
10: society faces a short-run trade-off between inflation and unemployment
…
One of the ten principles of economics, #7: governments can sometimes improve market outcomes.
Government taxing and spending can raise economic well-being, including by
· law enforcement, including contracts and patents
· providing public goods such as roads and national defense
· remedying externalities such as air pollution
…
 In previous chapters we have seen
· a tax reduces the quantity of a good or service sold in a market
· how the burden of a tax is shared partly by buyers and partly by sellers, the amounts depending on the elasticities of supply and demand
· taxes cause deadweight losses because reduction in consumer and producer surplus exceeds the revenue raised by the government
…
Most people agree the tax system should be both efficient and equitable.
Taxes should impose as small a cost on society as possible.
The burden of taxes should be distributed fairly.
… …
tax system
zei seido
課税制度

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