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If taxes are inevitable, what is the best kind of taxes for citizens to pay? Income...

If taxes are inevitable, what is the best kind of taxes for citizens to pay? Income taxes? Consumption taxes? Property taxes? Inheritance taxes? taxes reduce economic surplus. What type of taxes might minimize the deadweight loss associated with taxation?

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Income is the best kind of taxes for citizens pay. The impact of income taxation on the growth of private business in general, and on private investment in particular, may be examined through its effects on 1. People's work-efforts 2. Saving of the households in general and of private firms in particular and 3. Incentive and ability to invest. Taxation reduce the disposable consumption income and the capacity to save. Revenue taxes might minimize the deadweight loss associated with taxation.

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