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To: Kaslin
Suppose I hire you to repair my computer. The job is worth $200 to me and doing the job is worth $200 to you. The transaction will occur because we have a meeting of the mind. Now suppose there’s the imposition of a 30 percent income tax on you. That means you won’t receive $200 but instead $140. You might say the heck with working for me — spending the day with your family is worth more than $140. You might then offer that you’ll do the job if I pay you $285. That way your after-tax earnings will be $200 — what the job was worth to you. There’s a problem. The repair job was worth $200 to me, not $285. So it’s my turn to say the heck with it. This simple example demonstrates that one effect of taxes is that of eliminating transactions, and hence jobs.

OK, that was simply beautiful. BTT

19 posted on 06/18/2013 9:30:42 AM PDT by Billthedrill
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To: Billthedrill
OK, that was simply beautiful. BTT

Indeed it was.



21 posted on 06/18/2013 3:15:50 PM PDT by rdb3 (I ain't got no grape jelly! I only have purple.)
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