Land Tax in “The Atlantic”

15 Ways to Fix the World

Idea #8 – End All Taxes, Except One

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Author:Trevor
Date: Thursday, 25. June 2009 11:11
Trackback: Trackback-URL Category: Economics, Politics

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7 comments

  1. Chris Doss
    Tuesday, 14. July 2009 23:07
    1

    I read this article and thought of you guys over here.

    http://www.fool.com/investing/general/2009/07/08/what-the-us-needs-a-new-tax-system.aspx

    Cheers.

  2. Trevor
    Wednesday, 15. July 2009 13:24
    2

    Hey Chris, thanks for the link! You should drop by more often…

    As for a consumption tax, I think it’s likely better than our present system but I have a couple beefs with it. First off, there are many things I don’t want people to consume less of. We want people to consume more organic fruits and vegetables over against conventional even if the former is more expensive. If the tax system discourages consumption in general, it will discourage all types of beneficiary consumption over against less beneficiary types. For example, green building is a better building practice than conventional building, we certainly want more of the former, but a progressive consumption tax will favor the later instead.

    Also, the tax favors the rich who often are able to save a greater percentage of their income and there would have to be special laws set up to keep people from taking their tax-free savings to another country to consume. Else you create an incentive for people to do their largest consumption spending in other countries.

    Better to tax “bads” (pollution and all other externalities) and privilege.

  3. Sage
    Friday, 17. July 2009 2:56
    3

    since when are “sin” taxes a good idea?

  4. Sage
    Friday, 17. July 2009 2:59
    4

    Is this the Gov job..to decide what is good for me and my community and then by force (taxes) make people behave in one way verses another? Are you in favor of what the Gov has done with smoking, alcohol, etc? Shouldn’t we be free of coercion to live as we choose with out Big Brother messing with us?

  5. Sage
    Friday, 17. July 2009 3:01
    5

    Trevor, when you say “certainly we want…” don’t you mean “certainly I and those who think like me want…”. Obviously not everyone wants all of the things you mentioned above…should it be the role of Gov to dictate these things in individuals lives?

  6. Jeremiah
    Friday, 17. July 2009 14:39
    6

    While I suppose I am lumped in the “those who think like me” category, I have to ask a question. Why shouldn’t Trevor presume that “we” — as in all uf us (you included) — want the the things he mentioned? I mean, isn’t green architecture obviously more preferred to the alternative?

    You say, “Obviously not everyone wants all of the things you mentioned above,” but I don’t understand why. Are you referring to acquiring these things through taxes, which you would certainly oppose, or is it the things themselves that you are against?

  7. Trevor
    Friday, 17. July 2009 16:55
    7

    Sage, what are you talking about? Smoking in your own home or drinking alcohol are not externalities. Dumping poison in a public pound is an externality. Contributing to smog and asthma rates via pollution is an externality.

    Definition from wiki: “In economics, an externality or spillover of an economic transaction is an impact on a party that is not directly involved in the transaction. In such a case, prices do not reflect the full costs or benefits in production or consumption of a product or service.”

    So a tax on externalities, if set properly, restores the proper equilibrium to the market place. It puts prices for access to public assets (lakes, air, etc) back where they would be if they were privately owned. Since we don’t have (and never will have) full private property, externalities will always exist.

    It’s exactly because I DO believe we should be free from coercion that I’m in favor of taxing externalities. Without it, we LACK freedom.
    Haven’t you figured this out yet? I’ve only been talking about it for three years now.

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