Excess Spread Of Taxes In America

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Taxes in general create inefficiency in the form of deadweight loss or excess burden to society. The economic losses society endures due to the excess burden of taxation is the result of taxes or subsidies. One example it in income tax in America is progressive in which both marginal and average tax rates increases as income increases. Income taxes are generally inefficient because they increase labor costs for employers and reduce the quantity of workers and the wages of the workers
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