Disproving Stiglitz's Tax Neutrality
ebook ∣ Profit Economics Series, Book 72 · Profit Economics Series
By Hak Choi
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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.