Re: 'Waterhole' and land rents

""Peter Bjørn Perlsø"" wrote in message ...

Taxes affect incentives. Higher tax usually means less incentive to make
a transaction, but not that the incentive is eliminated.

The original idea was to compare intelligence with land, and taxing them.
With land, you can tax it up to 100% (assuming people can't disguise 10
acres to look like 9 acres) without affecting real output. Now consider a
person who earns lots of $$ thanks to his intelligence. If you tax away the
'extra' $$ that arises from his brains, he will have less take-home pay. But
will he quit his nice, cushy desk job? I doubt it.

Dan in Philly


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