A taxpayer says, "Sure I pay a lot of income tax, but I don't mind because I get back just as much money as I pay in." Assuming that his facts are correct, explain why the taxpayer's reasoning is faulty.Use a diagram to show that an income tax can make a person worse off even if he is rebated an amount of money equal to what he paid in.

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The Answer of A taxpayer says, "Sure I pay a lot of income tax, but I don't mind because I get back just as much money as I pay in." Assuming that his facts are correct, explain why the taxpayer's reasoning is faulty.Use a diagram to show that an income tax can make a person worse off even if he is rebated an amount of money equal to what he paid in.

A Taxpayer Says, "Sure I Pay a Lot of Income