Tuesday, November 23, 2010

When we gain efficiency, how much do we lower prices?

Tax Loopholes Are Corrupt and Inefficient, but They Should only Be Eliminated if Every Penny of New Revenue Is Used to Lower Tax Rates

From CATO's Dan Mitchell on tax policy.

If the enterprise does not keep some profit from its greater efficiency then where is the incentive? CATO should know better, but if they presume some natural tendency toward socialism, then give us the evidence because this sounds a lot like Animal Spirits.

Score one for Yglesias.

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