Some taxes are more expensive than others because they dampen more economic activity. Corporate income taxes are one of the worst. To illustrate by example, if

Some taxes are more expensive than others because they dampen more economic activity. Corporate income taxes are one of the worst. To illustrate by example, if you were to directly tax investment activity $1 per trade, you'd kill almost exactly $1 of GDP. Nothing would be gained. Land value taxes and VATs, it turns out, are some of the best because they're inexpensive and largely non-distortionary, and personal income taxes are somewhere in between.