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Unformatted text preview: o Why is tax system so complex? Simple taxes can be avoided If the system were simple, people would be able to find ways to orient their personal finances to avoid paying taxes So people that say we need to simplify our taxation system are retarded • If you do, be prepared to pay higher taxes in order to pick up the slack from the people that aren’t paying any o So is our system progressive, regressive, or what? Actually it’s about flat So in actuality the redistributive impact is zero • Spending o If you reduce the deficit by cutting spending, you redistribute wealth from low to high o If you reduce the deficit by raising taxes, you redistribute wealth from high to low...
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This note was uploaded on 11/27/2011 for the course POLI 100 taught by Professor Rabinowitz during the Fall '07 term at UNC.
- Fall '07