Scenario 2: I cut the taxes by half to 5%. Year One: Harvested 100 units Taxes 5 units (I have to learn to live on half income this year) Family 50 units Plants …Continue reading Why Raising Taxes Lowers Government Income – Part II
Tag: taxes
Why Raising Taxes Lowers Government Income (over time) – Part I
The reason increasing taxes doesn’t increase income to the government long term, but reducing taxes does… or at least can. In advance, I want to express my understanding that I am oversimplifying what has become a very complex issue. Let me also make clear that this principle doesn’t work ad infinitum (you cannot increase tax…Continue reading Why Raising Taxes Lowers Government Income (over time) – Part I