ACA Repeal/Replace: Progressives Face Moral Dilemma

[Eric the Green]

(09-06-2017, 11:59 AM)Warren Dew Wrote:

(09-06-2017, 09:53 AM)David Horn Wrote:

(09-05-2017, 06:22 PM)Warren Dew Wrote:

(09-05-2017, 02:53 PM)Kinser79 Wrote:

(09-05-2017, 01:52 PM)beechnut79 Wrote: While we all would enjoy not having to owe the IRS every year, how is that going to save a lot of money when the whole purpose of it is, supposedly, to obtain funds with which to run the government? Some have suggested replacing it with a personal consumption tax, which in effect would be like a national sales tax.

Let us just suppose that we could abolish the IRS.  There are three possible taxation methods to raise funds for the government (after of course it is shrunk down to a more managable size).

1.  Tariffs on imported goods.  Which is a fundimentally good idea.  I would strongly recommend that tariffs be very high on manufactured goods, your chinese Ishits for example or Japanese cars, and low on raw materials like oil, ore and etc.  This would would provide incentive to onshore production.
2.  Individual income flat tax.  I'd prefer to not have one at all.  Direct taxation was prohibited until 1913 for a reason, that reason is the US is not a single unified republic, rather it is a federation of sovereign states.  If direct taxation on income is necessary let the states do it.  
3.  National sales tax.  I'm not too fussed by that.

Also property taxes of various types.  Georgist land taxes, in particular, do not depress economic activity the way other taxes do.

That's more than wrong.  Taxation is taxation ... period.  Property taxes don't fall strictly on those most able to pay, since much of the land being taxed is and will be rented by others of lesser means or added to the cost of goods produced on that land, since there aren't many large estates that have no economic product of some kind.  Expect a major rise in the cost of food, for example.  Those less able to pay defer other spending to pay those taxes.  Tax spending, on the other hand, improves the economy. 

And a word on tariffs: we raise ours and others raise theirs in response.  All that does is force us to produce goods and services we are less equipped to produce, lowering productivity and shrinking the economy.  Sorry, there is no free lunch.

The math on the subject contradicts you.  Land taxes do not increase rents; they only cut the income to the land owners.  This is because, with little exception, land is not something that is produced, and thus is not something whose production can be depressed through taxes.

Property taxes are not equal to "land taxes." They are mostly about what's built (or grown?) on the land ("something produced"). The important considerations in the economy are not just "depressing production through taxes" but increasing rents and prices through taxation, and decreasing commerce through less government spending and thus too little taxes. And companies monopolizing and increasing prices and depressing wages, landlords speculating/flipping and thus increasing home values, etc.