njlauren -> RE: General Ideas for a Tax System (5/19/2013 8:16:16 AM)
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ORIGINAL: DesideriScuri quote:
ORIGINAL: SpanishMatMaster General Rule: We tax only what we want to discourage. - Let us tax environmental damage, but covering many times the probable cost of repairing the damage done (even for nuclear waste we can estimate the way to eliminate the damage in the future and the necessary investment today to be able to repair it later). With "one time" we repair it (or plan its repair). With the rest we finance the state. So, tax the industries that create the environmental damage, right? That won't really motivate them to stop, you realize? Any extra cost (the tax) gets rolled into the cost of goods and sold to the consumer anyway. Consumers have no real way to pick and choose which power sources they get their power from, so you'll just be taxing consumers, rather than producers. And, that's a big boot in the ass to a "captive audience." FirstEnergy owns several nuke plants. Their "Davis-Besse" plant in NW Ohio was shut down because of a "pit" found in the containment cap (okay, the pit was merely the size of a football and left 10mm stainless steel cladding out of a 150mm thick carbon and stainless steels reactor cap; but, it was only a pit [8|]). The company paid $800M to fix the problem and $28M in fines. One of the odd things (to me) was that the fines were not allowed to be passed down to rate-payers. How they were to pay those fines without charging rate-payers struck me as impossible. Well, while working for a different employer, I had the opportunity to talk to some of the linemen for FirstEnergy. Since FirstEnergy rate-payers weren't allowed to be charged, when bulk energy was sold between providers, the fines were, essentially, included in those rates. So, when FirstEnergy produced more power than it's customer base was using and sold that excess to power companies looking to cover shortfalls (say, in California), the fines were paid for by bumping up the cost of that excess power. So, the rate-payers of the power company in CA that bought extra generation from FirstEnergy, ended up paying for those fines. Who are you taxing/fining, then? The producers who are causing the damage, or the customers who don't really have much of a say? quote:
- Let us tax inequality, but only above a limit considered "natural" (number to be found by democratic consensus). Let us motivate the rich to help the poor... so that they themselves pay less taxes when the inequality indexes decrease towards that natural limit: but only *then*. No tax reduction for one individual help "Democratic Concensus" isn't a "natural number" (other than in a mathematical sense), and will be open for political manipulation. "Democratic Concensus" is, in and of itself, pretty much an oxymoron. 50%+1 vote isn't concensus. How would you tax "inequality?" quote:
- tax reduction for all when inequality actually decreases. - While doing this, let us tax inequality in properties, not in income. We have nothing against income. We have nothing against a very poor guy earning suddenly a bunch of money. We have something about many people having few and few people having many (beyond the natural limit). How are you defining "property?" Is an investment a "property," or are you thinking of physical things like houses, buildings, real estate, etc.? quote:
- Let us not tax profit: we want people to have profit. Nor building companies: we want people to building companies. Nor getting a job: we want them to have a job. What is left to tax? Are you saying to tax whatever is "saved?" That is, if a person makes a profit (which would be exchanging their time-labor input for money), what they don't spend of that profit gets taxed? That is still taxing the profits and income. quote:
- Let us tax the abuse of the state institution, but not the use of state institutions. A normal use should be for free, because we do not want to discourage it. Exaggerated use should be punished by law with many times the damage done. This includes particularly the abuse of the legal system. The devil of this last part lies in the details that define it. Use/abuse are subjective terms and may be defined quite differently depending on who is doing the defining. A local radio station puts it this way, "It's not about what is fair and what is not fair. It's about who gets to decide." In the US, conservatives and liberals will define "fair" quite differently when it comes to things like what level of taxation constitutes a "fair share." quote:
Let us tax only what we want to discourage. And that, let us tax is heavily, so heavily that the society actually changes. The issue is who gets to decide what "we" want to discourage, and what we are allowed to discourage. Placing heavy tax loads on derogatory speech is most definitely an infringement of free speech, regardless of what the majority may or may not decide. This is the problem with pure democracy. In a pure democracy, you will have tyranny of the majority. Those in the minority will not have any rights (in those areas they disagree with the majority) and will be at the mercy of the majority. That is an afront to any who believe that there are Human rights inherent solely on a person being a human. The general gist of this sort of tax plan is great, but I don't think there is any apolitical way of implementing it. At least in the US, it will be abused to the benefit of those in power staying in power. The lineman don't know what they are talking about, and I can tell you why. There is a common myth that power (and oil and gas) are priced by the provider, that the power generators decide how much to charge, and that isn't true. Prices for power are based on power trading markets, both in futures and spot market pricing, there are regional power grid auctions that decide how much power to buy. Power generators try to estimate demand (using weather data, among other things) to figure out how much natural gas (or coal, or oil) to buy, and they buy futures contracts to cover that (along with hedges in options and derivatives in case they guess wrong either way). Power providers (the power company you have coming into your house) buys power much the same way, they buy peak and off peak futures for given periods, and they make up the difference in a daily spot market. The providers don't get a phone call from Con Ed saying "I need 500 megawatts of people power, how much?", they go onto an auction spot market to buy power, and it is based on demand (spot markets are generally a lot more expensive to play on; if there is a glut of power you sell excess power at a loss, if there is high demand, you pay through the nose). California got whacked when good ole Arnold became governor in large part because Enron gamed the power auction systems. Power providers make more money selling excess power because what they do is find a region that has large demand, and sells it in that market, which due to supply and demand, makes them more profit, there is no doubt, but they don't set the price of oil, any more then Exxon or anyone else sets the price of oil. In the power markets these days, there are providers and there are generators, most of the power companies have sold off their power plants to other companies, and don't generate their own power, and if power generators were able to charge what they want, the providers would be screwed, because in most states their prices are still regulated (since the delivery to your house is done by a single company, who bills you each month), and they can only raise rates so much. I agree that taxing things like the environmental failures do often end up a tax downstream, that they will raise prices to pay for their mistakes. The only way to do this right would be to hit the people most affected, the stockholders. If the company gets fined, that money would need to be paid up front and if fined, the company would not be allowed to write that fine off as a business expense, so it would be a direct hit to their profits. Under current tax code, when a company gets fined like that, they can deduct it as a business cost, which is outrageous, because it is the government lessening the blow (unless they have modified the tax code, as of not many years ago this was the law). There should be laws that if fined, companies are not allowed to try and make up for it by cutting employees or any of the other tricks for a period of time, to act as a deterrance (since if the stock price plummets, the CEO and executives would be on the hot seat). s
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