c3brus on Yik Yak | Econ student here! 😁 taxes aren’t explained well! The buyer and seller actually *split* the cost of a tax (called “loosing surplus”) the Gov gets some of the lost surplus. Pros: can help inequality, generate revenue Cons: lower quantities, higher prices

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General 1d

c3brus

Econ student here! 😁 taxes aren’t explained well! The buyer and seller actually *split* the cost of a tax (called “loosing surplus”) the Gov gets some of the lost surplus. Pros: can help inequality, generate revenue Cons: lower quantities, higher prices

General 1d

Talarico is a liar he’s not lowering rent or housing prices like he says he will he’s just gonna tax the hell out of all these home builder and apartment complexes to where the owners of these will raise prices drastically just to make the same profit.

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Anonymous 1d

👏A producer *cannot* just “pass on the tax.” It does not happen.👏 Taxes eat into *everyone’s* happiness! The hope is that the government can use taxes to generate revenue to run the country, or redistribute surplus to solve inequality in markets. Do governments do that well? 🤷‍♀️ ehhh. But can a producer just “pass on the tax?” No! 🙅‍♀️ It’s a common misconception of how taxes actually work! Hope this helps!