Comments on: Rethinking taxes and welfare in a cryptocurrency world

By: Lori

Lori — Tue, 24 May 2011 18:17:23 +0000

The bulk of progressive opinion in the USA is that sales tax is a regressive policy. I’m undecided on that. 10% sounds pretty high. Especially vicious is Alabama where even food is not sales-tax-exempt (at least a few years ago when I heard about it on the now-defunct NOW on PBS).

I think “sin taxes” are a trap intended for Democrats, who are cowed into the “tax is a dirty word” meme and so end up either doing the Republicans’ dirty work for them re. government downsizing (per Wanniski’s “two Santa Claus” theory), or else use casinos, cigarettes, proposed cannabis ‘decriminalization’ as a revenue cow, making what’s left of the public sector more and more financially dependent on activities that are unpopular, widely disapproved of, etc. If taxes are a punishment for wrongdoing the small government crowd also wins.

By: @mikeriddell62

@mikeriddell62 — Tue, 24 May 2011 14:58:19 +0000

Taxing mindless consumption would be better – it would reinforce the polluter pays principle.

@mikeriddell62

By: The Doctor

The Doctor — Tue, 24 May 2011 13:10:55 +0000

If you do not mind my asking, Lori, what is your opinion of already high sales taxes in the United States (for example, Washington DC’s 10% sales tax) or multiple sales taxes in municipalities (such as 7% state and 3% local)? Or, for that matter, ‘sin taxes’ on consumables in some states (7% sales tax plus whatever the municipal sales tax is plus 8% on alcohol or tobacco)?

By: Teilo

Teilo — Tue, 24 May 2011 06:52:54 +0000

Because of bigger VAT, economy would still be very cyclical.

Actually I like the idea of progressive taxation for valuable assets. We could use RFID technology to mark all valuable physical assets. Also all valuable assets would be in a database. Police could confiscate all assets, that are unmarked.

By: Teilo

Teilo — Tue, 24 May 2011 06:38:19 +0000

What about taxing capital assets?

By: Lori

Lori — Tue, 24 May 2011 05:47:16 +0000

Like many left-leaning Americans, my red flags go up at any suggestion of replacing income tax with sales tax. But, as you say, cryptocurrency is coming, and as when David Brin says the sensor nets are coming, I’m inclined to believe it. Package dealing it with a basic income guarantee would of course make it look less like a decisive conservative win. Like you said, this is no time for ostriching…

By: Galuel

Galuel — Tue, 24 May 2011 05:32:46 +0000

Very good.

You should take a look at : http://www.open-udc.org/en/start