Opportunity Costs

Opportunity Costs

Do people pay more taxes than they have to? The obvious answer is yes, but not because they want to. Most people would prefer to avoid the tax if they knew of a way to do so which could reduce their risk and at the same time give them more money, especially if it did not affect their lifestyle.  Remember if you pay a tax you could have avoided, you not only lose the tax dollar, but what that dollar could have earned for you had you not given it away. This is known as Opportunity Cost.

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