Taxes

in #taxes3 years ago

Taxes aren’t just free money for your favorite pet policy, they are resources pulled from somewhere at some cost and undoing them may reverse those costs.

Tax someone’s income they either take home less money or choose to work longer hours creating a shortage of work hours vs demand for income and keeps people away from their families longer.

Tax a particular activity you discourage it, but often when taxing vices, the effect gets concentrated among the poorest of us, adding insult to injury as vices have more inelastic demand.

Tax businesses they either recoup by lowering labor/materials costs or raising prices. If those aren’t options lower profits make it hard for that industry to raise capital vs other higher yielding investments stunting growth which would provide future employment or innovations.

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