Community Corner
Further Pondering the Use of Tax Monies
"If we look at a tax collection, for example, we must consider not only how much revenue that tax raised, but also how much economic activity was frustrated by confiscating it. Because of the tax, the business or individual had less money to spend or invest, so his employees didn’t earn as much (and paid less tax themselves as a result), his potential expansion was frustrated (so his intended contractors and their vendors lost business), he had to raise his prices to cover the tax (so his customers had less to spend on other purchases, reducing their standards of living as well), etc., etc. Only by reviewing all these other tangential results do we see the full effect of any economic choice." By John F. Di Leo -