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The difference is they have to pay tax on what they earn, so they are technically contributing to the society.
by limaoscarjuliet 6y ago
The difference is they have to pay tax on what they earn, so they are technically contributing to the society.
- epicureanideal 6y agoBut where would that money come from? If they both clean the other person's house for $20, where does $5 in taxes come from? (Answer: from the other income earner.). So the "contribution to society" doesn't just magically appear when we make this a commercial transaction.
- limaoscarjuliet 6y agoYup, they just decided to give away some money to the society (via govt taxes). Not saying this is good, just saying there is a difference.
- AnHonestComment 6y agoYes, both families face an increased tax burden. However, there’s no new income: each family is paying $20 and making $15 for net -$5. Increasing costs for decreased benefit (eg, neither family is cared for during transit times) is why I referred to it as a net loss.