ECON201 \ economics homework help
Question # 00804219 Posted By: Updated on: 04/27/2021 11:12 AM Due on: 05/27/2021
Subject General Questions Topic General General Questions Tutorials:
When taxes induce people to change their behavior—such as inducing Jane to buy less pizza—the taxes cause deadweight losses and make the allocation of resources less efficient. As we have already seen, much government revenue comes from the individual income tax in many countries. In a case study in Chapter 8, we discussed how this tax discourages people from working as hard as they otherwise might. Another inefficiency caused by this tax is that it discourages people from saving.