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"One of the key concerns with income taxes is minimizing economic distortion." Economists might agree with that but politicians certainly wouldn't. The whole
by massysett 11y ago
"One of the key concerns with income taxes is minimizing economic distortion."
Economists might agree with that but politicians certainly wouldn't. The whole USA tax code is set up to reward some activities and punish others.
- repsilat 11y agoI think the key difference is whether the distortion is intentional or just incidental. All things being equal, we'd prefer fewer incidental distortions of smaller impact. As for intentional distortions, I think the idea goes that they're all harmful in some way (some more than others) but that the benefit of behavioural change can outweigh the cost. I don't think that would be a terribly controversial statement among economists.