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So the income tax is essentially a ~30% transaction fee. Imagine a world without that deadweight loss. https://en.wikipedia.org/wiki/Deadweight_loss#Deadweight
by f7ebc20c97 4y ago
So the income tax is essentially a ~30% transaction fee. Imagine a world without that deadweight loss.
https://en.wikipedia.org/wiki/Deadweight_loss#Deadweight_loss_of_taxation https://en.wikipedia.org/wiki/Deadweight_loss#Deadweight_los...
- adastra22 4y agoCosts are deducted though, so it is only 30% of the profits.
- f7ebc20c97 4y agoTechnically everything is a cost, though, right?
- adastra22 4y agoThese things are precisely defined in accounting terms though. Whatever you bartered away had a cost basis, and whatever you got in exchange has a fair market value. The difference is income.
- f7ebc20c97 4y agoWhat if you live in a closed bartering community of abstract economic business entities and everything is a cost basis for something else?
- tagami 4y agoYeah it’s inefficient, but that “deadweight loss” gives you the common infrastructure required for a modern society (roads, police, fire, et al)
- tengbretson 4y agoIn the US nearly all of your examples of what we get in return are funded by sales and property taxes
- HideousKojima 4y agoSpecifically, roughly 70% of the federal budget is spent on the military, social security, medicare, and medicaid.
- stuxnet 4y agoNot to mention a gigantic military budget including all the alphabet agencies... all funded by that inefficiency.
- f7ebc20c97 4y agoPerhaps there is a way to pay for these things besides taxes? Unthinkable!