4 ms·
> a 10% income tax will work out to be the same percent of your berries taken away during the trade. The key point is that the government won't accept berries
by josephcsible 4y ago
> a 10% income tax will work out to be the same percent of your berries taken away during the trade.
The key point is that the government won't accept berries as payment of your taxes. You have to sell your berries to someone else for dollars, and then pay your taxes in those dollars.
- whatshisface 4y agoLet's work out a couple examples to clarify it. If a berry is worth $1, then a 10% sales tax on 10 berries is $1, which is 1 berry. If a berry is worth $10, then a 10% sales tax on 10 berries is $10, which is 1 berry. So what we see here is that the government is taxing 10% berry value at all the different values of a dollar.