Quote:
Originally Posted by whell
Wow, you and I can agree on this.
Where we may or may not agree is what the tax code should look like, or what the proper function of a tax code should be.
IMHO, it is impossible for a government to enact a tax system that influences economic or social policy without eroding individual freedom. Nor, do I think such a system is desirable for a host of reasons. Therefore, the simpler the system, and the more such a system encourages the efficient private sector use of capital, the better. A tax system that encourages economic growth, and is designed to benefit from that growth, is ideal.
The possible answer may be a system that balances taxes on both wealth creation and consumption, yet discourages neither. There will always be some level of tax that discourages a particular activity. However, if the threshold it both reasonable and predictable over the long term, demand will typically drive the ship. Currently, federal taxes on capital formation and utilization or high, and minimal on consumption. May be an area of opportunity.
Just a thought....
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OMG Whell, you realize that part of your argument is based upon some simplistic notion which was written on a cocktail napkin?
Perhaps Wanniski should have simplified it further as it appears to be beyond the grasp of so many!!!
Chas
BTW, I've just laid in a new stock of smart ass pills, just in case anyone wonders.