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Politics : Formerly About Advanced Micro Devices
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To: TimF who wrote (372228)2/27/2008 9:22:28 PM
From: Road Walker  Read Replies (1) of 1576313
 
If the government is trying to raise $1bil, and the costs of getting that billion to the government (compliance costs, avoidence costs, enforcement costs, perverse incentives etc.) is $.5bil than the dead weight loss of taxation is $.5bil.


It costs private companies money to raise funds as well. And private companies are not always efficient in the use of funds... very often they are not. On the other hand government usually performed repetitive, necessary actions that it can do very efficiently.

Bottom line is your precious "dead wight loss" is probably higher in the private sector than it is in government. But then it's just words without measurement so it's pretty much worthless conjecture anyway.
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