Friday, May 4, 2012

Friday's Tax Quote - May 4, 2012


“[I]n most situations, the changes that taxes induce are symptoms of economic waste or, using economic jargon, inefficiency.  In the absence of taxes, people and businesses react to prices that approximately reflect the true social costs and benefits of what they buy and sell, and taxes can turn prices from being pretty good signals of social cost and benefit into very bad ones.”

- Joel Slemrod

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