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Basically, the tax code is used by governments as an incentive mechanism to manipulate entities into behaving in ways they want.
by anonisko 6y ago
Basically, the tax code is used by governments as an incentive mechanism to manipulate entities into behaving in ways they want.
- millstone 6y agoWhich can be a good thing. If there's an activity with negative (positive) externalities, then there's a deadweight loss, which can be corrected by taxing (subsidizing) that activity.
- anonisko 6y agoDepends on whether you agree with what the people in charge define as a 'good thing'. In a democratic government, you might like how a powerful tool is being wielded when your people are in charge, and be terrified when the 'other' is in charge.