While I sometimes make moral arguments against the current tax system (because it is corrupt, because it doesn’t treat people equally, because it provides unearned wealth for insiders, etc), my main arguments are based on economics.
High tax rates on workers and entrepreneurs discourage productive behavior.
Double taxation on income that is saved and invested discourages capital formation.
Tax preferences and other loopholes bribe people to use resources inefficiently.
Maybe it’s time, however, for a back-to-basics primer on taxes and behavior. That’s why I’m very glad that Professors Tyler Cowen and Alex Tabarrok of George Mason University (and the Marginal Revolution blog) are producing videos on various economic principles.
And I particularly like a video they…
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