Disproving Stiglitz's Tax Neutrality

ebook Profit Economics Series, Book 72 · Profit Economics Series

By Hak Choi

cover image of Disproving Stiglitz's Tax Neutrality

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Like lump-sum tax, profit tax is also said to be neutral, non-distortionary, and even efficient. Joseph E. Stiglitz recommended making all expenses, including fixed cost, tax-deductible to fully enjoy this benefit. This book proves that deducting all taxes turns an economy into anarchy, and its neutrality attachment further destroys the anarchic economy.

Disproving Stiglitz's Tax Neutrality