by Outcast_Searcher » Mon 15 Jul 2019, 14:44:50
$this->bbcode_second_pass_quote('Plantagenet', '
')1. We can learn a lot from Europe when it comes to taxes. They use a Value Added Tax which taxes each step of a product's manufacture and sale. This is a little like the Productivity tax being discussed above. We can just copy Europe and learn from how they do it.
I'm mostly down with that. But Americans need to realize two things:
1). A VAT tends to be highly regressive. They end up expensive (see my second point), and so they take up a lot of the income of the lower middle class and below.
Given the strong progressivity of the European income tax, I'm fine with that -- but it seems to be the kind of thing that makes the left in the US go bonkers, so I wouldn't expect it to get passed without a HUGE fight.
2). At least in Europe, the VAT tends to be rather a large tax over time. Is the income tax going to be reduced any if that happens, or do we just let government grow to be much bigger (and still hugely grow the debt -- given the proclivities of the politicians and the voters who elect them?). Looking around, I'm seeing a lot of numbers hovering in the 20% area -- on top of the income taxes, that's a hell of a lot of taxing.
I think if we're going to make government much bigger, then forcing them to live within their means AND pay off ALL the government debt over time should be iron clad -- or we shouldn't let that happen. Else, I think we risk making debt related things MUCH WORSE, including the ability to pay all the government debt.
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Overall, I like the sense of your ideas on this. However, given how spread out and relatively rural much of the US is, the workability of mass transit outside the cities is going to be a big challenge re cost, including cost of maintenance. So that one might require some negotiation / tuning as it evolves.
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.