Class summary 12/7

Tax is neither good or bad, it just transfers from on to another, but it changes people’s behavior.

The deadweight of tax in United States is 30% value of the tax.

If we have a way to raise tax that does not change our behavior, we will be much richer.

Collecting tax is a pure cost.

The legal economic incidence is completely independent.

The demanders will bare the cost of tax.

Labor demand curve is really flat, labor supply curve is really deep, and workers pay the payroll tax.