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Economically speaking the taxes are equivalent. There should not be any difference in collected tax between them in principle. However, in practice these differ in terms of what administrative burden they impose on firms and more importantly how easy it is to avoid paying taxes under each system. This can ultimately have some effect on the revenue that is ...


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Typically in economics, government policy is considered as the independent variable -- that is, it's a thing that we can control and change, which then affects dependent variables, things like inequality. Asking if inequality affects tax rates, then, is a bit like asking if weather causes the sun to shine. The causality runs in the other direction. Tax rates ...


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EDIT: The research I found looks at income inequality, not wealth as the question asks. Specifically with respect to social welfare spending (not necesserily taxation), the following articles from 2003 seem to suggest the opposite is true. de Mello and Tiongson: The political economy literature suggests that redistributive spending is higher in unequal ...


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It is true that government can print as much money as it wants but value of money is not constant. For example, under 101 econ quantity theory of money the price level is given by: $$P = \frac{MV}{Y}$$ Where $P$ is the price level (with change in price level giving you inflation), $M$ money supply, $V$ velocity of money and $Y$ real output. Assuming $V$ ...


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This is US specific and more of a political than an economic or technological problem. In the US, there is a lot of lobbying by tax preparation firms for the antiquated tax system to remain unchanged. See e.g. this 2019 article "Inside TurboTax’s 20-Year Fight to Stop Americans From Filing Their Taxes for Free". In many other developed countries, ...


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Dividends have to be taxed as income, as otherwise people can incorporate, have their wages taxed as revenue for the corporation, and then pay themselves a dividend. (Canada adjusts taxes on dividends in an attempt to make these two approaches equivalent for taxes purposes.) Capital gains are at a lower rate for reasons that are debatable. However, in order ...


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