Jandila comments on How to deal with someone in a LessWrong meeting being creepy - Less Wrong

16 Post author: Douglas_Reay 09 September 2012 04:41AM

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Comment author: [deleted] 08 September 2012 02:26:59PM -2 points [-]

And they still dodge taxes now, even when the rates have been slashed into oblivion. If anything they only seem more determined to do it.

Comment author: TGM 08 September 2012 02:51:13PM *  4 points [-]

Mindkiller Alert!

The yield of a tax at 0% is 0. The yield of tax at 100% is also close to zero, as nobody will do anything to earn money that will be taxed at 100% (i.e. ensure all earnings dodge that tax). Therefore the set of policies that give maximum tax yield do not have a tax rate of 100%, and increasing tax rates beyond that reduce tax yield.

This analysis is subject to some caveats, and where the optimal rate is is a very complicated and politically charged question, of course, and this is already completely off topic.

Comment author: [deleted] 08 September 2012 03:14:36PM 0 points [-]

(Not to mention that some taxes are easier to evade than others, and it's easier for some people (e.g. self-employed workers) to evade taxes than for others (e.g. public servants).)

Comment author: drethelin 08 September 2012 03:01:17PM 1 point [-]

Taxes will be dodged regardless of the rate as long as paying lawyers and accountants is cheaper than paying those taxes. Simplifying the tax code would do a lot to prevent this deadweight loss