Every specific tax, as well as the nation's whole tax system, becomes self-defeating above a certain height of the rates.
About this quote
- What does it mean?
- Mises argues that tax rates above a certain point reduce economic activity enough to lower total revenue, making high taxes self-defeating.
- In plain terms
- Too high tax rates can actually reduce the total tax revenue collected.
- What can you take from it?
- There is a limit to how much revenue taxes can generate.
Where it applies
Putting it to work
Questions to consider
- Where is the tipping point for taxes?
- How do you measure tax efficiency?
Another view
The exact point where taxes become self-defeating varies by context.
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