Thursday, February 27, 2014

The portion of the text that I found most interesting was the topic discussing taxes and how they can be a "deadweight loss". If the tax on somebody is 50% then the incentive for the individual to make an income or profit decreases significantly because if they are losing half of the income they make, what is the purpose of working at all?  So lets say that person does decide to opt out and quit working all together, does there absense from work affect the government and the overall income recieved from taxes each year? Not necessarily, but does it effect the individual and their families?  Most definitely.  He used the anaogy of the photo album and the burgler, the burgler will just throw it away and it is really no benefit to him but it is a huge loss to the family.  Something about this does not seem right.

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