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that's why taxing consumption, not income is one of the most efficient ways of taxation. Consumption is a proxy for wealth, doesn't require us to measure wealt
by vasilipupkin 12y ago
that's why taxing consumption, not income is one of the most efficient ways of taxation. Consumption is a proxy for wealth, doesn't require us to measure wealth precisely and doesn't penalize productive investments
- amunicio 12y agoConsumption is a very bad proxy for wealth, even worst than income. If you live hand to mouth, you get taxed on 100% or your wealth. If you make $100M a year and have $10B in the bank, you only get taxed on the $15M or so that you spent this year.