In various comment sections, and also in the media, I am seeing lots of misconceptions about taxes. For instance, lots of people wonder why I focus so much on efficiency, and not on "who pays what". I recall once chatting with my wife about our flexible benefits plan, which causes her lots of aggravation. She was surprised to hear me say I wish they would abolish it, as in her view we "benefit" from the program. Let me use an analogy to explain exactly how we "benefit" from this tax break. Imagine a government that took 10% of each person's income, and put in in a wooden box. The box was placed at the end of a 10-mile gravel road. Each citizen was given a knife, and told then could crawl on their
Scott Sumner considers the following as important: tax reform
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