--- Harland Harrison <[EMAIL PROTECTED]> wrote: > In the case of a uniform tax on all goods, the > consumers will bear all of the burden.
No. A portion of the general sales tax fall on the so-called "producer surplus", which is really land rent. With less production and fewer sales, there is less profit, and so entrepreneurs bid less to rent land, and so some of the tax is at the expense of land rent. What enterprises pay in tax, they would have paid in rent. > The consumers > will either pay more for > the same goods, or their standard of living will go > down. Some consumers will shift to more leisure and fewer goods, since there is no tax on leisure. Fred Foldvary
