Excellent example :) It's the interplay of tax and expenditure which redistributes income. So, to use your example: If the government spent 100% of tax revenue on the girls, then there is no redistribution. And as we…
1) Tax breaks do not distribute income. Not up, not down, not at all. Thus tax breaks to not redistribute income either. 2) Agreed. 3) The line between fairness and positive/negative externalities is fuzzy.
Love the framing in this article. Letting someone keep an extra portion of their own income, but only if used for savings or healthcare, is referred to as "tax expenditure". This person - again we're only talking about…
Excellent example :) It's the interplay of tax and expenditure which redistributes income. So, to use your example: If the government spent 100% of tax revenue on the girls, then there is no redistribution. And as we…
1) Tax breaks do not distribute income. Not up, not down, not at all. Thus tax breaks to not redistribute income either. 2) Agreed. 3) The line between fairness and positive/negative externalities is fuzzy.
Love the framing in this article. Letting someone keep an extra portion of their own income, but only if used for savings or healthcare, is referred to as "tax expenditure". This person - again we're only talking about…