Reply to post: Re: I wonder

Tax Systems: The good, the bad and the completely toot toot ding-dong loopy

Riku

Re: I wonder

But is it really deadweight? In order for the money raised to be actually useful, it has to be spent and it is, both through wages and purchases, rents, etc. Government pays staff who buy cars, groceries, etc. Government needs a cruise missile, it buys one and so on. Arguably government is very good for cashflow revenue and turnover in a way that savers (who lock up capital), are not.

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