--- Birgir Runolfsson <[EMAIL PROTECTED]> wrote: > But the economic question is not whether the basketball star should play > basketball or be a model. The economic question is for which team should > he play; the one who values his services at $100,001 or another that > values his services at $1,000,000.
The question under debate is whether there is neutral taxation. If the star plays for a team that pays him $1 million, and the government taxes $800,000 of that, he will continue to play, so the tax did not alter his incentives; the tax is neutral. Fred Foldvary ===== [EMAIL PROTECTED]
