How does double taxation affect consumption, saving and economic growth?
What will be an ideal response?
By double taxing saving, an income tax distorts the choice between consumption and saving which is really the choice between present consumption and future consumption. Double taxation also tends to reduce the saving rate and the rate of investment – and ultimately the rate of economic growth.
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In behavioral economics, the term salience refers to
A) relevance to the problem being investigated. B) people only consider information when it is conveyed in a subtle manner. C) how an experiment is designed. D) people consider information when it is presented in an "eye grabbing" manner.
In order to maximize profits, a firm should produce the level of output at which total revenue is maximized
a. True b. False Indicate whether the statement is true or false