ABSTRACT
The movement in population after the tax has been imposed, is, to begin with, an increase, and then a decline until a new stable level of population is reached, lower than that from which the population had set out. On the other hand, in this short period of time between years zero and (OA + 15) years after the imposition of the tax, the governmental expenditure of the tax proceeds will be acting in the opposite direction towards an increase in the standard of living of the poorer people in the community. The poorer classes will benefit from the expenditure of the tax proceeds— the more so the greater the proportion of the revenue of the income tax which is spent on social services. Alterations will take place in the system of demand schedules for commodities and factors of production as a result of the collection of the tax and the expenditure of its revenue.
