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Jobs and Taxes

Posted By Henry Oliner On November 29, 2012 @ 4:00 am In Business | No Comments

“Suppose I hire you to repair my computer. The job is worth $200 to me and doing the job is worth $200 to you. The transaction will occur because we have a meeting of the mind. Now suppose there’s the imposition of a 30 percent income tax on you. That means you won’t receive $200 but instead $140. You might say the heck with working for me — spending the day with your family is worth more than $140. You might then offer that you’ll do the job if I pay you $285. That way your after-tax earnings will be $200 — what the job was worth to you. There’s a problem. The repair job was worth $200 to me, not $285. So it’s my turn to say the heck with it. This simple example demonstrates that one effect of taxes is that of eliminating transactions, and hence jobs.” — Walter Williams

From Explaining Conservative Economics in 25 Quotes [1] by John Hawkins in Townhall [2] 8/7/2012


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URLs in this post:

[1] Explaining Conservative Economics in 25 Quotes: http://townhall.com/columnists/johnhawkins/2012/08/07/explaining_conservative_economics_in_25_quotes/page/2

[2] Townhall: http://townhall.com/

[3] : http://www.rebelyid.com/2012/11/jobs-and-taxes/

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