In January 2003, the late Professor David Bradford told a New York Times reporter that a consumption

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In January 2003, the late Professor David Bradford told a New York Times reporter that a consumption tax discourages work effort. Shortly thereafter, he received the following e- mail: “Since when is a tax on consumption a disincentive to work? This sort of specious reasoning ran amok in this article. I laughed as I saw it was labeled ‘Economic Analysis.’ ” Who was correct, Professor Bradford or his correspondent? Justify your answer using either an arithmetic or algebraic argument.
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Public Finance

ISBN: 978-0078021688

10th edition

Authors: Harvey Rosen, Ted Gayer

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