A general tax on wealth will cause efficiency loss in labor markets.

Name: A general tax on wealth will cause efficiency loss in labor markets.
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Question

Quizplus · Accepted Answer

A general tax on wealth primarily targets the stock of wealth (assets) an individual owns, rather than their labor income or the act of working. Therefore, it does not directly distort labor supply decisions or create efficiency losses in labor markets in the same way that income or payroll taxes might.

A General Tax on Wealth Will Cause Efficiency Loss in Labor