A tax on value added makes sense to me.
The other developed countries use it, and they give it back at the border to help exporting.
It's simpler than a lot of taxes (well, the income tax, for example).
It's regressive, yes. We could balance it out with other measures. Or, in Theoryland, we could avoid the regressivity (while creating other problems) with a single-factor unitary income tax using sales to source income. See, by analogy, http://www.taxfoundation.org/blog/show/505.html: "[T]he Commerce Clause requires a state to fairly apportion income. Does single-sales factor apportionment meet this requirement? The Supreme Court answered ‘yes’ in the case of Moorman Manufacturing Company v. Bair."
Tuesday, June 30, 2009
Death or taxes
The American Republic may survive without new taxes, but I doubt it. Without increases in taxes, I think we can stave off default, but, or so, I'm thinking we're about to experience hyperinflation, which tends to bring death to republics.
So here goes.
So here goes.
Subscribe to:
Posts (Atom)