1. Lectures in Macroeconomics- Charles W. Upton The Trade-Off

2. Efficiency Losses

3. The Trade-Off Efficiency Losses When we tax wage income or consumption there is an efficiency loss

4. The Trade-Off Efficiency Losses So too when we tax capital income

5. The Trade-Off So What are we to Do? So what are we to do?

6. The Trade-Off Eliminate the Government? So what are we to do? We could eliminate all government spending

7. The Trade-Off Eliminate the Government? So what are we to do? We could eliminate all government spending Recognize that efficiency losses are a cost of government spending

8. The Trade-Off Efficiency Losses from Wage and Sales Taxes Efficiency Losses $ $ collected by Taxes

9. The Trade-Off Efficiency Losses from Taxes on Capital Income Efficiency Losses $ $ collected by Taxes

10. The Trade-Off Rotate the Graph Efficiency Losses $ $ collected by Taxes

11. The Trade-Off Merge the Graph Efficiency Losses $

12. The Trade-Off Merge the Graph Efficiency Losses $ Sum of Efficiency Losses

13. The Trade-Off Merge the Graph Efficiency Losses $ Sum of Efficiency Losses

14. The Trade-Off And The Number is This graph is not to scale, and the general point is obvious: a balance is called for. But can we put a number?

15. The Trade-Off A Formula from the Past

16. The Trade-Off Updated

17. The Trade-Off Putting Some Numbers

18. The Trade-Off End ©2004 Charles W. Upton. All rights reserved