New answers tagged taxation
2
In your comment you say you want the answer in context of the classic textbook model for goods market/output equilibrium.
Following the Blanchard macroeconomics textbook lets consider closed economy so the output will be given by:
$$Y=C+I+G$$
where $Y$ is output/income (they must be always equal), $C$ consumption, $I$ investment and $G$ gov. spending.
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0
It's possible, although highly unlikely. Take a look at this article here, in it, it clearly states that this has been tried before in European countries, but it was often ineffective due to a lack of effective 'policing' (where a country's tax agency taxes all those who the new tax woul apply to, rather, only getting a small percentage).
I (and many ...
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