On Taxation Principles

[benny]

To me, fiscal responsibility can only mean one thing: feeling a duty as income earner to reveal publicly how easy it has been for me (relatively to others) to earn this income so that the tax I will pay can be fixed only in relation to this easiness. In other words, I think my tax rate should be strictly inversely proportional to (real) sacrifices I have gone through to get the income.

[Michael Hardner]

So, the tax rate should be voluntary ?

[benny]

So, the tax rate should be voluntary ?

Voluntary in the Kantian sense yes.

[cybercoma]

I can see it now, the "easy-come-easy-go tax reformation bill".

[August1991]

In other words, I think my tax rate should be strictly inversely proportional to (real) sacrifices I have gone through to get the income.

Economists refer to vertical and horizontal equity. As boring as those terms may be, I suggest that you understand them since your OP is a derivative of this distinction.

Then again, benny, I suggest that you open your mind to a broader distinction: equity and efficiency. Tax equity, like your OP, is concerned with what's fair. Tax efficiency is concerned with how a tax affects what people do in the future. In designing a tax, IYV, which "concern" is more important?

Edited July 11, 2009 by August1991

[tango]

I'm interested in learning about this, but I have no idea what you're talking about.

I have a question for benny ... who should decide how much tax you pay?

[benny]

Economists refer to vertical and horizontal equity. As boring as those terms may be, I suggest that you understand them since your OP is a derivative of this distinction.

Then again, benny, I suggest that you open your mind to a broader distinction: equity and efficiency. Tax equity, like your OP, is concerned with what's fair. Tax efficiency is concerned with how a tax affects what people do in the future. In designing a tax, IYV, which "concern" is more important?

My taxation principle is strictly based on the economic concept of opportunity cost (or reservation wage) which means that I would tax economic agent up to the point where s/he becomes indifferent in between pursuing her/his present activities and shifting to her/his next best option.

[benny]

I'm interested in learning about this, but I have no idea what you're talking about.

I have a question for benny ... who should decide how much tax you pay?

Like all political matters, we the people should try to decide tax issues inside a deliberative democratic system and when this system reaches its limits, we should decide it by a dictatorial democratic system.

[August1991]

My taxation principle is strictly based on the economic concept of opportunity cost (or reservation wage) which means that I would tax economic agent up to the point where s/he becomes indifferent in between pursuing her/his present activities and shifting to her/his next best option.

That's not a bad taxation method - governments would capture any economic rents. (Opportunity cost and reserve price/wage are not the same thing.)

We do this now to a degree with resource royalties and land taxes. For income taxes, it would be very hard (impossible) to estimate.

[benny]

That's not a bad taxation method - governments would capture any economic rents. (Opportunity cost and reserve price/wage are not the same thing.)

We do this now to a degree with resource royalties and land taxes. For income taxes, it would be very hard (impossible) to estimate.

It becomes very easy (self-reinforcing actually) to estimate as soon as one becomes aware of the following concepts and their applications: consumer and producer surpluses, revealed preferences (and its statistical methods), truthfulness in auctions and mechanism designs, reflective equilibrium and the efficient distribution of the burden of proof in case of a breach of a social contract.

Edited July 22, 2009 by benny

[Pliny]

To me, fiscal responsibility can only mean one thing: feeling a duty as income earner to reveal publicly how easy it has been for me (relatively to others) to earn this income so that the tax I will pay can be fixed only in relation to this easiness. In other words, I think my tax rate should be strictly inversely proportional to (real) sacrifices I have gone through to get the income.

And I think income taxes are unnecessary.

[benny]

And I think income taxes are unnecessary.

The surplus has to be dealt with.

[August1991]

It becomes very easy (self-reinforcing actually) to estimate as soon as one becomes aware of the following concepts and their applications: consumer and producer surpluses, revealed preferences (and its statistical methods), truthfulness in auctions and mechanism designs, reflective equilibrium and the efficient distribution of the burden of proof in case of a breach of a social contract.

Please explain how all this would apply to the income of Jack Nicholson, let alone Bill Gates.

[benny]

Please explain how all this would apply to the income of Jack Nicholson, let alone Bill Gates.

By publicly developing cloning, a society can identity and capture or dissipate the economic rents generated from the ownership of internal natural resources.

Edited July 27, 2009 by benny

[August1991]

By publicly developing cloning, a society can identity and capture or dissipate the economic rents generated from the ownership of internal natural resources.

When you manage to clone Voltaire, you can PM me, Benny.

OTOH, I suggest that you start with Brab Pitt. IME, women and gays are prepared to pay (put up with) more for a decent guy than straight men are prepared to pay (put up with) for a woman. So I reckon Brad Pitt will earn you more than Pamela Anderson. Then again, the Barbi Twins may be a better pilot project. They seem to have already been cloned.

Edited July 27, 2009 by August1991

[benny]

When you manage to clone Voltaire, you can PM me, Benny.

OTOH, I suggest that you start with Brab Pitt. IME, women and gays are prepared to pay (put up with) more for a decent guy than straight men are prepared to pay (put up with) for a woman. So I reckon Brad Pitt will earn you more than Pamela Anderson. Then again, the Barbi Twins may be a better pilot project. They seem to have already been cloned.

No need to clone anyone actually, it is enough just to recognize that the popularity and wealth of the rich and famous are mostly due to reproduction processes (movies, automated instruments, general culture, nature, etc.) to which they have not contributed more than anyone else.

Edited July 28, 2009 by benny

[OddSox]

No need to clone anyone actually, it is enough just to recognize that the popularity and wealth of the rich and famous are mostly due to reproduction processes (movies, automated instruments, general culture, nature, etc.) to which they have not contributed more than anyone else.

Um, if it's that easy, I would suggest you get out there and get rich and famous so you can get your fair share.

[benny]

Um, if it's that easy, I would suggest you get out there and get rich and famous so you can get your fair share.

Being ill-fated is not easy to bear.

[Jerry J. Fortin]

I will suggest that taxation is indeed a question to be pondered, but it needs to be done in a manner that is chosen by the will of the people. I say this because it is the will of the people to select a government whose only source of revenue is the people. What I am getting at is context.

[benny]

I will suggest that taxation is indeed a question to be pondered, but it needs to be done in a manner that is chosen by the will of the people. I say this because it is the will of the people to select a government whose only source of revenue is the people. What I am getting at is context.

A will makes things easy.