Reply To: Tax Shifting


Thanks! That makes perfect sense.

Just to clarify, does this decrease in supply occur (as part of the other effects) every time a general sales tax is implemented?

Also, in the footnotes, Rothbard says that for a general sales tax, resources can only shift into idleness. He goes on to give an example of labor shifting into leisure. Does this occur for land as well in the case of a 20% sales tax? Or does it only occur for labor because labor has an opportunity cost?