This blog contains posts and comments written by students in Dr. Tufte's economics classes at Southern Utah University.
4/15/2005
Taxes
It is April 15th and there is a very appropriate article on taxes. Various suggestions are given to improve our tax code. One suggests a national sales tax instead of an income tax. I think that a national sales tax would cut down on spending and hurt the economy. It would also create more dead weight social loss. What do you think?
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3 comments:
In an earlier comment I worked out a ballpark figure for filing 1040 forms only of $75B. The point of a national sales tax is that while it may create a deadweight loss, it will save on preparation expenses.
Dr. Tufte,
Is the deadweight loss worth the preparation expenses? Would it hurt or help the economy?
Most estimates are that a national sales tax would be beneficial (on this count).
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