Tuesday, November 9, 2010

Tax Regime From Scratch

Felix Salmon writes:
If you were building a national taxation structure from scratch, you’d definitely include a carbon tax in there somewhere — and probably some kind of Tobin tax, too, not to mention a wealth tax and possibly some kind of consumption tax as well.

Really? Based upon what criteria exactly? FLG gets the consumption tax argument. That's about tax distortions. But Tobin tax and carbon tax presuppose various assumptions that FLG doesn't agree would automatically be in some magical Utopian tax regime.

3 comments:

Anonymous said...

Well, every tax has problems. Income tax discourages work, alcohol tax discourages martinis, inheritance tax discourages bequests (maybe that's not so bad, looking at Paris Hilton)(Peter Pulitzer, hey! I'm for it! 75%!). VAT discourages consumption (okay, so?). Capital gains and corporate income tax discourage productive activity.

So your question is, if you have to raise a thousand dollars, what do you want most, least, to discourage? I prefer a $5/gallon gasoline tax to a 50% income tax rate. I'm inclined not to back a wealth tax - for double taxation reasons. Estate tax yes, on large estates only. In general, I want people to have a large incentive to earn the next dollar, and that is lessened by aspects of the current tax system (marginal tax rate) dae.s.

The Ancient said...

FLG --

This is a good project for you.

Why don't you take the tax code with the same apparent seriousness you grant to the League?

(The Deficit Commission's report is going to be dead on arrival. Get a jump on The Next Big Thing.)

((Psst. Radical Fiscal Reform.))

P.S. Unless, of course, you are in need of a short-term/short-horizon job.

Anonymous said...

FLG, I'm sorry but my email has been dead for more than a week and until Mr. P does whatever needs to be done, I won't have it back. The children killed something and then we have a new something. Otherwise I would've just emailed this to you. But can't so didn't. Enjoy:

http://blogs.telegraph.co.uk/news/edwest/100062966/when-people-stop-believing-in-god-they-start-believing-in-big-government-and-obamaism/

Mrs. P

 
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