Interesting post. It seems to intertwine multiple issues:
Should the tax structure be changed so the wealthy pay a different share of taxes, or pay them in different ways?
Should the overall level of taxes be changed?
Should the distribution of government spending be changed?
The three questions above should be addressed separately, then brought together into a more coherent view. I wish a presidential candidate would actually do that and relate it to their policy preferences, but I doubt most will.
I’m cautious about arguments to simply increase taxes to spend more on good causes because governments tend to implement ineffectively. I’m also cautious about arguments to increases taxes for the rich or corporations, as they usually don’t address the potential for higher taxes to create a drag on broader economic growth.
I was happy to mix 1 and 2 - I didn’t intend to do more than allude to question 3 here. I don’t have a strong view on the answers—the question is whether they are important, neglected and tractable enough to be worth specialising in.
It’s reasonable to be cautious about the distortions created by some taxes, but no reason to assume the costs exceed the benefits before checking. Creating a less distortionary tax mix is part of the project.
Interesting post. It seems to intertwine multiple issues:
Should the tax structure be changed so the wealthy pay a different share of taxes, or pay them in different ways?
Should the overall level of taxes be changed?
Should the distribution of government spending be changed?
The three questions above should be addressed separately, then brought together into a more coherent view. I wish a presidential candidate would actually do that and relate it to their policy preferences, but I doubt most will.
I’m cautious about arguments to simply increase taxes to spend more on good causes because governments tend to implement ineffectively. I’m also cautious about arguments to increases taxes for the rich or corporations, as they usually don’t address the potential for higher taxes to create a drag on broader economic growth.
I was happy to mix 1 and 2 - I didn’t intend to do more than allude to question 3 here. I don’t have a strong view on the answers—the question is whether they are important, neglected and tractable enough to be worth specialising in.
It’s reasonable to be cautious about the distortions created by some taxes, but no reason to assume the costs exceed the benefits before checking. Creating a less distortionary tax mix is part of the project.