But any income tax discourages working, while a national sales or VAT levy would discourage consumption. From a pure efficiency point of view, this would seem to be preferable.
Payroll taxes penalize work much more than income taxes.
Sounds to me like social engineering through the tax code. If you are a Free-Market. But any income tax discourages working, while a national sales or VAT levy would discourage consumption. From a pure efficiency point of view, this would seem to be preferable. Sounds to me like social engineering through the tax code.