Question about Individual Computers & Internet
One could consider taxes like capital gains tax and corporate tax double taxes--the individual already paid income taxes on the money she invested in the asset that produced capital gains (except in special circumstances), and the corporation's dividends (when returned to the shareholders) are taxed, as are its employees' incomes. While I sympathize with the progressive nature of these taxes, the fact that they tax the same thing multiple times--leading to some perverse effects like the interest tax shield that increase leverage beyond an efficient rate--bothers me as an economist. What are the effects of this double taxation? -- decreased investment, capital flight, more progressive income distribution, greater tax revenues? I'd like to weigh the costs and benefits of double taxation using some measure of "efficiency" (Pareto efficiency) and perhaps "fairness".
Less disposable income for the average taxpayer, which causes less buying power, which decreases the expansion of the economy.
Posted on Nov 24, 2014
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Posted on Jan 02, 2017
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