Ponce
23rd April 2010, 12:23 PM
Why the Valued Added Tax Is Coming On Top of the Income Tax
There are plenty of reasons to shudder at the idea of higher taxes. There are also plenty of reasons to expect them nonetheless.
It is understandable that everyone dislikes paying taxes, because they are a forced personal outlay for things one does not necessarily appreciate.
Economists, for their part, teach their students that in addition to this understandable opposition to taxes, taxes also tend to change economic behavior, mainly in undesirable directions.
A tax on wages and salaries, for example, lowers the net reward to supplying hours of work to the economy. Sometimes, to be cute, economics professors style that tax as a “subsidy for consuming leisure,†just to drive home the point.
http://www.economicpolicyjournal.com/2010/04/why-valued-added-tax-will-be-added-in.html
===========================================
Note: Only one person from Cuba read this article.
There are plenty of reasons to shudder at the idea of higher taxes. There are also plenty of reasons to expect them nonetheless.
It is understandable that everyone dislikes paying taxes, because they are a forced personal outlay for things one does not necessarily appreciate.
Economists, for their part, teach their students that in addition to this understandable opposition to taxes, taxes also tend to change economic behavior, mainly in undesirable directions.
A tax on wages and salaries, for example, lowers the net reward to supplying hours of work to the economy. Sometimes, to be cute, economics professors style that tax as a “subsidy for consuming leisure,†just to drive home the point.
http://www.economicpolicyjournal.com/2010/04/why-valued-added-tax-will-be-added-in.html
===========================================
Note: Only one person from Cuba read this article.