Good government is inefficient government in the realm of tax collection.

Posted by $ Olduglycarl 9 years, 5 months ago to Economics
57 comments | Share | Flag

THE LAFFER CURVE

Arthur Laffer recently wrote a defense of the corporate VAT tax substitution being proposed by Rand Paul and Ted Cruz.

Dr. Laffer understands that there are conservative opponents of his flat VAT tax plan. He doesn't seem to know why. I know why. The reason is expressed by Dr. Laffer.

The U.S. government should collect taxes in the most efficient way possible so as to do the least damage to the economy.

This sounds good. In fact, it is conceptually inaccurate and highly misleading. The opponents of Dr. Laffer's famous curve -- I am among them -- line up against "the most efficient way possible" for the government to collect taxes. Why? Because we do not want efficient tax collection. We want inefficient tax collection. Why? Because we want the least damage done to personal liberty. (The economy can look out for itself.)

Good government is inefficient government in the realm of tax collection. Here, waste is good -- morally and technically.


All Comments


Previous comments...   You are currently on page 2.
  • Posted by $ 9 years, 5 months ago in reply to this comment.
    Maybe we should just learn from the radicals- (Rules for Radicals), but be truthful.
    I'm engaged with the Twelve Visions Party, They advocate for the Prime Law of protection only budget as well as the Prime Law itself. I found in further study that the Prime law idea underlies the intentions of our constitution. tvpnc.com
    Reply | Permalink  
  • Posted by j_IR1776wg 9 years, 5 months ago in reply to this comment.
    Teddy and Woodrow were easily the worst back-to-back presidents in our history. But W and Barry are giving them a run for the title:-)
    Reply | Permalink  
  • Comment hidden due to member score or comment score too low. View Comment
  • Posted by $ MichaelAarethun 9 years, 5 months ago
    If you wanted proof Cruz and Paul are full time RInos and worse supporters of the socialist left you have only to look at the words VAT. That crosses out all the garbage on the republicans list short of Carly F. taking Hillary's place and using Jindal as a VP running mate for his vote getting power.

    Is there anyone, anyone out there stupid enough to think VAT which is a tax on an host of imbedded taxes will be paid by anyone except the consumer look in the mirror and say now I have seen the face of stupid.

    For the last time get real get a life and pay attention businesses DO NOT PAY taxes they collect taxes for the government and ldeduct the cost of collection in the Cost of Government column which comes right after the legitimate costs of doing business column and immediately precedes Profit.

    What a bunch of air head morons and you wanted these two as alternates to Hillary? Why? The left is going to get what they want either way but these to sneaks shouldn't be part of it.

    Rand Paul and Cruz are NOT Republicans nor do I think they are Republicans in Name Only they are just garden variety run of the mill left wing socialists. and with the use of that idiotic plan are not in the right wing of the left nor even the center.

    RANT RANT RANT....OK I'm done....

    Who does that leave ...Rubio and they haven't even used the Bimbo Brigade yet. that ought to prove interesting? Seven million in debt whose going pay for the hookers this time?


    Ediit they aren't Value Added they add nothing to the value of a product or service instead they are Value Subtracted. Thank God for Walmart and the Dollar stores or you would all be eating Chinese at French Restaurant prices.
    Reply | Permalink  
  • Posted by $ 9 years, 5 months ago in reply to this comment.
    The flat tax as a concept would be of course under perfect conditions but those conditions can not exist until Everyone is profoundly honest and capable...I will not hold my breath in this kakistocracy.
    Your latter points are spot on.
    Reply | Permalink  
  • Comment hidden due to member score or comment score too low. View Comment
  • Posted by $ MichaelAarethun 9 years, 5 months ago in reply to this comment.
    NO! A flat tax is just a fascist income tax in disguise whose purpose is still control not income. In the beginning it was 7% on the wealthy . Within a very few years it reached 77%. What's to prevent a flat tax from doing the same thing and what's to prevent tax breaks for Gates, Soros, Lewis and all the others who can afford to buy them especially if they get direct interference rights with the elections of other states or municipalities within their states.

    The only form I've seen besides the tariffs authorized are an end user consumption tax with a set level that cannot be raised without an Amendment and a provision denying the government the right to go into debt with two exceptions and with only one exemption with no exceptions)

    Authorized debt

    Natural Disaster Funding and War. But must be addressed as a debt as the first budget item of the following year.

    Authorized Exemption.

    Right to Life based on the principle that the government has zero business taking from the citizens that which they need simply to exist. Food, Shelter (one per family), clothing, medical expenses, air to breathe and water to drink.

    With a set amount per adult and per child per annum and used at the rate of 1/12 per month based on a true evaluation of Cost of Living including those costs such as devaluation and debt repudiation caused by the government or others.)"

    As for welfare make it a direct ratio of minimum wage to encourage working and the difference to be decided locally.

    I would add these provisions

    No Funding No Mandate.

    None of Those Listed to all measures or candidate regardless of number.

    Votes once cast may not be given to another candidate or measure.

    Winner must have 50% plus one of those registered.

    If a citizen may not vote in any geo-political area they may not contribute to geo-political areas outside their own as defined by the precinct voters guide and ballot and funds, materials, or labor contributed could not be used outside those geo-political areas.

    This cleans up soft money, vote buying, influencing selection of candidates or measures by outside interests etc.

    Can it be done? Of Course. But not until we go back under the Constitution and never if we continue to accept totalitarian forms of government.

    the Cutoff? When it's a nation of free individuals upholding their responsibilities of honoring the freedom of the rest of their fellow citizens and controlling their servants the government.

    Or until the military forces the change following it's oath of office.l
    Reply | Permalink  
  • Posted by j_IR1776wg 9 years, 5 months ago in reply to this comment.
    So with the US having 18 trillion in debt and around 120 trillion in unfunded mandates plus politicians at all levels stealing those taxes collected plus a runaway welfare system, I find myself in agreement with Webster and Marshall "...That the power of taxing it [the bank] by the States may be exercised so as to destroy it, is too obvious to be denied , and That the power to tax involves the power to destroy [is] not to be denied...".
    http://quotationsbook.com/quote/38275...

    Why are you so eager to fund America's destruction?
    Reply | Permalink  
  • Posted by $ 9 years, 5 months ago in reply to this comment.
    For National protection on the federal level and infrastructure at the town/city/state level.
    Or do you think we could crowd fund everything by those self interested?
    Reply | Permalink  
  • Posted by $ 9 years, 5 months ago
    We want government to be efficient with the taxes it collects, not efficient in the ways it collects them.
    Reply | Permalink  

  • Comment hidden. Undo