To eliminate the deficit (and halt the growth of public debt) a politician suggests that "we should tax the rich". To illustrate she makes a simple calculation in which she applies a higher rate to the total income reported by "the rich" in the previous year. She says that the government could solve the deficit problem by taxing "the rich". What are the fallacies of such a claim?
To eliminate the deficit (and halt the growth of public debt) a politician suggests that "we should tax the rich". To illustrate she makes a simple calculation in which she applies a higher rate to the total income reported by "the rich" in the previous year. She says that the government could solve the deficit problem by taxing "the rich". What are the fallacies of such a claim?
Chapter13: Federal Deficits, Surpluses, And The National Debt
Section: Chapter Questions
Problem 11SQP
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To eliminate the deficit (and halt the growth of public debt) a politician suggests that "we should tax the rich". To illustrate she makes a simple calculation in which she applies a higher rate to the total income reported by "the rich" in the previous year. She says that the government could solve the deficit problem by taxing "the rich". What are the fallacies of such a claim?
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