What are most efficient and best taxes (user search)
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  What are most efficient and best taxes (search mode)
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Author Topic: What are most efficient and best taxes  (Read 867 times)
AGA
Atlas Politician
Junior Chimp
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Posts: 5,267
United States


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« on: June 10, 2021, 09:38:04 PM »

Pigouvian taxes are the most efficient since they increase societal welfare. Land value and lump sum taxes are perfectly efficient in that they have no effect on societal welfare. Almost every other tax causes some loss in efficiency. However, a government wouldn't get much revenue just from relying on efficient taxes, so efficiency is often traded off for extra revenue.
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