richardhutnik said:
Kasz216 said:
richardhutnik said:
Also, if one wanted to REALLY argue that there shouldn't be government manipulation of the economy, there would be found an optimal tax rate things were set at, with the proper set of deductions related to real expenses with out showing any favortism for one sector or another. And it would be left alone, and not used as a tool to manipulate or "stimulate" the economy. One would argue to find this tax rate, and leave it alone, NOT argue forever that taxes need to be cut more. Unpaid for tax cuts are as much of a faux stimulate for the economy as any other Keynesian program. And it is absurd to say that if you cut taxes, they pay for themselves, because they don't. Natural economic growth can make up for it. But if one follows the logic that "tax cuts pay for themselves", then you follow it to a conclusion if you have no taxes, that would generate sufficient income to pay for everything, because they pay for themselves. |
For the record, that's what I want. I think tax cuts provide a very short boost in jobs and economic activity that then goes away after a year or so... leaving nothing but debt.
Works better then stimulus spending... but only just slightly better.
|
What needs to happen is a nation needs to figure out its identity, set the tax rates at what is needed to pay for what idenity it assumes for itself, and then leave the tax rate alone and the tax code. Even if the tax code is complicate, IF it is stable, people can work around it. And even if it taxes are high, if there is sufficient return for the tax dollars (see Norway), then it can work.
All these play with the tax code is the government messing around with the economy, which isn't the right thing at all. But hey, I guess mucking around with the tax code is the way the GOP can feel like they are doing something in Washington, to fix the economy.
|
I woud argue that a complex tax code is inherently open to abuse and sets up for what you'd call mal-consuption and mal-production.
For example the German tax code leading to the movies of Uwe Bole because tax law benefits those who lose money.
Or the sales of companys that have aquired losses to get a tax benefit, rather then if there was no tax benefit, those who had high amounts of shares would be much more in a hurry to push things along.
