I have decided that, considering there is a "zone" of negotiable salaries, it is probable that taxes ensure that one is in the low end of the zone, and therefore do cost one something, due to the psychological effect of the tax. I still insist that the net is more or less the market price, and the gross is mainly an adjustment to the tax burden, but perception would be influenced.
If we assume that there is stability, the inflationary effect of passing on labor costs should not be escalating. However, you are right enough, if one is at the beginning of the process, and eventually prices increase, one will lose some buying power, or set off a new round of adjustments.
If taxes are part of the duty of citizenship, they cannot merely be theft. But it is true that an otherwise honest citizen may very well feel them to be too high, and will be treated with undue harshness for if he seeks to resist........ |