Tuesday, August 01, 2006

Economists and Taxes

This morning, before I left for work, my roommate asked me if the paycheck he recently received for his teaching services was substantially smaller than he expected exclusively due to taxes.

It was.

Ouch!

I stopped for a moment, and we shared a moment of sadness and disgust about the inefficiencies of the various levels of government and the amount of servitude they require from workers in the United States. Both of us also realized that the government has a pretty slick game going on - as long as most Americans are relatively content to pay the current level of taxes, no one will find it worth their while to really work for change. For example, my roommate, while perfectly willing and eager to jump onto someone else's efforts for lower (or no) taxes, finds that even the substantial amount of money he lost to the government is not enough to prompt him into personal, individual, action.

It's all about incentives, costs, and benefits my friends.

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