Tuesday, May 30, 2006

Quote of the day

"Suppose I hire you to repair my computer. The job is worth $200 to me and doing the job is worth $200 to you. The transaction will occur because we have a meeting of the mind. Now suppose there's the imposition of a 30 percent income tax on you. That means you won't receive $200 but instead $140. You might say the heck with working for me -- spending the day with your family is worth more than $140.

You might then offer that you'll do the job if I pay you $285. That way your after-tax earnings will be $200 -- what the job was worth to you. There's a problem. The repair job was worth $200 to me, not $285. So it's my turn to say the heck with it. This simple example demonstrates that one effect of taxes is that of eliminating transactions, and hence jobs."
-Walter Williams (on the effect of taxes)
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3 comments:

zuke said...
This comment has been removed by a blog administrator.
lance said...

Zuke is a spammer!!!!! Hit the road Spammer you are not wanted or needed here.

Christopher Taylor said...

Suck it, spam boy.