CronoDAS comments on Mathematical simplicity bias and exponential functions - Less Wrong

12 Post author: taw 26 August 2009 06:34PM

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Comment author: CronoDAS 30 August 2009 07:03:57AM 1 point [-]

Well, the key is "what kind of taxes, and on what?"

Taxes that distort incentives away from the no-externality, no-taxes perfect competition equilibrium, do create econ-101-style inefficiency, but not all possible taxes distort incentives, not all possible taxes are on things that have no negative externalities, and not all markets are in a perfect competition equilibrium.

In the real world, all else is never equal.