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Wednesday, October 12, 2005

 

Net GDP or Tax Inefficiency

Is there a better way for the national government to raise revenue? Do we really want to loose 2% to 5% of the economy's output every year merely because of the way government chooses to raise revenue? The President has created a Commission to make proposals to reform the tax system, and I wonder, what are the odds the Commission's proposals will find a way to reduce this large tax burden of lost output?

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