How much does it cost to tax a dollar of revenue away from the private sector and transfer it to the government in order to bail out a specific industry?
(a) One dollar
(b) Less than one dollar because the administration of and compliance with the tax
laws creates jobs for people
(c) Less than a dollar because of the excess burden resulting from the elimination of
productive exchanges by the taxes
(d) More than a dollar because collection of the taxes requires resources that would otherwise
be available for private sector production
ANSWER
(a)
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