DesideriScuri -> RE: General Ideas for a Tax System (5/20/2013 10:09:21 AM)
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quote:
ORIGINAL: SpanishMatMaster Imagine that I propose a song championship where all countries vote per telephone the best song of all presented. And you tell me that the proposal is not concrete enough and I should give you an example of winning song. That is nothing more than a popularity contest. And, personally, I disagree that what we tax and what we don't tax, should be nothing more than a popularity contest. quote:
The situation is pretty much similar: I am proposing a criteria to choose what to tax or not, which will give different results in different situations and with different opinions of the population on certain things. And you demand from me a concrete potential result of the process to judge the whole process? I do not think that this is a good idea. Not necessarily a concrete potential result, but more concrete than nebulous would be awesome. quote:
But ok, I will do what you say, with one condition - we move outside the US and go to Germany. A society I know better and whose economy I know better, so that I can guess better which would be the result of applying the strategy defended. Fair enough? Here is my example: artificial production of CO2. In Germany. Take in account that it is already taxed. All I am proposing is an increase of the amount, in this concrete example. Concrete enough, or should I give some numbers? (I would have to investigate, but I will if you demand it). See, now? This is a great example. You want to decrease artificial CO2 production. Tax the batshit out of it, if that is the choice of Germany's Citizenry. But, each country gets to decide for themselves. Now, to take it to an extreme conclusion, what happens if Germany's economy is depressed because of the increased taxation of artificial CO2 production (and what, exactly, counts as artificial will have to be fleshed out before the taxes can be levied)? What happens if the German economy is depressed because no one else decides to tax artificial CO2 production (hence the "extreme" part)? Now, you will also get into more grey areas, too. Why is the process is creating the artificial CO2? You can't just tax emissions. Business isn't creating emissions just to create emissions. In keeping with your choice of Germany (and this is also going to be not a perfect example due to current German Government goals), let's just talk about power generation. Germany relies on nuke power plants to some extent (for now anyway), right? Taxing emissions is also taxing power generation, which, I'm sure you don't really want to decrease. If there is no other suitable option for power production to replace the CO2 producing generation, you are then taxing a positive (power generation). Take it to another extreme conclusion. You want to tax artificial CO2 production from power generation. What happens when the producers don't want to pay the tax? They either sell, or they close up shop, right? What do you do when they all decide to close up shop. What are you going to do then? Even if it takes 2 years to wind down everything in an environmentally friendly way, what will Germans do for power? There isn't enough power production (you have a shitload of capacity from wind turbines that could cover, if you could come close to capacity, but there simply isn't enough wind in enough places to get there) that wouldn't have to pay those taxes. What happens at that point? I get what you are saying at a general idea level. I get it, but I'm saying it's not that simple. Moving back to the US, I support a consumption tax. There would be no income tax. Income being a positive that we want to increase, it wouldn't be taxed. If we changed that to a consumption tax, those who consume more (which would likely be those with higher incomes, no?) pay more. What happens when consumption takes a nosedive and you no longer have enough money coming in to support the level of government you have? I completely agree that we should aim to only tax those things that we want to decrease. Relying on "consensus" or "majority rules" is just going to end up being either not having enough to tax, or tyranny of the majority.
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