Taxes on industrial profits will leave less room for capital accumulation and slow down the rate of

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Taxes on industrial profits will leave less room for capital accumulation and slow down the rate of growth. Do workers already employed in the industrial sector have an incentive to lobby for such taxes, the proceeds of which are transferred to them in the form of additional benefits? Show that the answer to this question depends, among other things, on the slope of the labor supply curve to industry. Argue, in particular, that if the supply curve is horizontal (as in phase 1 of the Lewis model), the tendency for already-employed workers to vote for industrial taxation will be higher.

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