Study Notes on Economic Tax Concepts and Urban Growth Issues

The answers are referred to as "short answers" and are described as not being great, with some questions being embarrassing to the speaker.
However, the exam is graded on a scale of 100 points.
The class handbook also lists assignments as 100 points, but their weight in the grade may be different in the online system 'Canvas'.

Introduction to Tax: Acknowledges the existence of excise taxes that increase prices paid by consumers.
Explanation of Tax Burden:
- The government imposes the tax burden ultimately on consumers (the demanders), even if the suppliers (businesses) are responsible for remitting the tax payment.
- Key Concept: The demanding party ends up paying the tax indirectly reflected in higher prices.
Tax Implications:
- Changing consumer behavior based on tax changes is highlighted. For instance:
- If a tax is levied on purple cars, consumers may opt to purchase non-purple cars instead, which could negatively impact sales of purple cars.
- A statement about the fairness of taxes is made, indicating that taxing necessities (like heart transplants) feels morally troubling.

Urbanization: Describes a rapidly growing city (San Francisco) filled with opportunities and wealth generation.
Competitiveness Among Workers:
- The influx of workers leads to competition, which can depress wage growth in the city, leaving existing workers at a disadvantage.
Land Ownership and Its Implications:
- Criticism of landowners (Henry George's perspective):
- Landowners benefit from rising land values without contributing to economic productivity.
- Claims that because they are not actively contributing, society shouldn't feel hindered from taxing them.
- Capitalists: are depicted as entrepreneurs whose profits diminish due to increasing competition, suggesting a stagnant profit rate despite risks taken.

Describes the relationship between taxation and land prices:
- If taxes on land increase, post-tax land prices decrease, placing more financial pressure on landowners who are not viewed as contributing to the economy.
- Raises the question of why these landowners should retain rights to the income from their land when they are not actively using it for productive purposes.
Proposal for Taxation Reform:
- Implied suggestion to tax land more heavily as a fair distribution of wealth, aligning with Henry George's views.
- This proposal indicates the belief that such a tax could rectify imbalances in wealth distribution.

Discussion of long-term consequences of industrial decay in parts of the United States:
- Mention of factories shutting down and urban decay, indicating economic struggles for traditional manufacturing towns like Pittsburgh.
Overall sentiment reflects a recognition of systemic economic issues stemming from labor and land ownership inequities.

A sense of urgency in addressing economic disparities through taxation is clear.
The discussion also reveals the speaker’s belief in the need for systemic reform in land ownership and taxation.