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Sunday, December 31, 2017

Genuine Tax Reform I: Principles

Principles of fairness in Taxation

We just saw a parody of tax "reform" in the Republican's Tax bill in 2017. Anyone can call anything "reform." But to be actual reform one has to be applying strategies that minimize public misery and optimize the public good. If we want to avoid corruption, we need to define what the parameters (boundaries & rules) of tax reform are about.

  • Taxes should encourage actual capital investment*,
  • Facility or Ability to Pay, be affordable to the ones paying them,
  • regulate behavior, (encourage beneficial spending/discourage waste, fraud and harmful behavior)
  • not hurt people.

Additionally Taxation must take into account:

If they meet those criteria then one can say they are fair. Once we understand these principles we can debate the details and come up with a tax system that is fair and sustainable. When taxes don't meet those criteria they are oppressive.

Sources and Further Readings

Unearned Wealth

Disambiguating Actual Capital From Simple Wealth and The Trouble with Capitalism
http://holtesthoughts.blogspot.com/2016/01/the-trouble-with-capitalism.html
Critiquing PikettyCapital Versus Unearned Wealth
http://holtesthoughts.blogspot.com/2015/11/piketty-capital-versus-unearned-wealth.html
Facility Versus Ability to Pay
http://holtesthoughts.blogspot.com/2017/12/benefit-versus-ability-to-pay.html
Henry George Quotes:
https://www.cooperative-individualism.org/george-henry-page.htm
https://en.wikipedia.org/wiki/Pollock_v._Farmers%27_Loan_%26_Trust_Co.

For those with Facebook:

Rick's pages:
https://www.facebook.com/notes/common-wealth-tax/doc-120-the-1890-georgist-constitution/813168725462939/?hc_location=ufi
http://holtesthoughts.blogspot.com/2015/08/the-georgist-constitution.html
https://www.facebook.com/notes/common-wealth-tax/doc-161-poverty-is-caused-by-regressive-taxes-and-prevented-by-progressive-taxes/1498599096919895/

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