According to the economist Milton Friedman,the "least bad" tax is a tax on
A) income received from profits and interest.
B) labor income.
C) the value of unimproved land.
D) the value of land including the improvements to the land.

Question

Quizplus · Accepted Answer

According to Milton Friedman, a tax on the value of unimproved land is the "least bad" tax because it does not distort economic incentives or behavior. Unlike taxes on labor income or profits, which can discourage work and innovation, a tax on unimproved land values does not discourage landowners from using their land efficiently or invest in improvements. Additionally, land value tends to be relatively stable over time, making it a more predictable revenue source for governments compared to other forms of taxation.

According to the Economist Milton Friedman,the "Least Bad" Tax Is