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The difference is that value added taxation changes prices and reduces economic output. Lump sum (fixed) negative taxes (basic income) has no effect on prices m
by rsrsrs86 9y ago
The difference is that value added taxation changes prices and reduces economic output. Lump sum (fixed) negative taxes (basic income) has no effect on prices making it economically more efficient.
Technically sales taxes in companies reduce marginal revenues so companies choose lower production levels.