Tuesday, February 28, 2006

Economics of taxation

The effects of taxation? Here's a description:

The price that invariably must be paid for taxation, and for every increase in taxation, is a coercively lowered productivity that in turn reduces the standard of living in terms of valuable assets provided for future consumption. Every act of taxation necessarily exerts a push away from more highly capitalized, more productive production processes in the direction of a hand-to-mouth-existence. (#)
Knowing that a thief will rob you every time you earn a penny might encourage you to work more and harder so that the effects of the robbery don't affect the total income as much. However, this kind of incentive to work is in no way a positive one. Or sure, if you are an employer that does not get robbed of the extra hours your employee puts into your business as a result of the constant thefts. Perhaps the Left is secretly giving employers free labor by encouraging taxation? How ironic would that be?

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