In response to:

Taxing the Poor

NewJAl Wrote: Dec 12, 2012 8:00 AM
I agree. You can never meet the wants list of humans, as is apparent with what the super rich acquire, because they can. Note that luxury taxes exist, so, to some degree, your idea is used. A question is what a Government needs to do. We differ, Liberals and I, as to the role of Government, and one idea made America the most powerful Nation of Earth. The other made Greece.
johnm h Wrote: Dec 12, 2012 8:56 AM
If we taxed consumption instead of work savings and investment we would have more stuff in the market, more competition, lower prices and we'd have more production, fewer imports, more exports. Your view is very Keynesian. Aggregate consumption does not generate jobs. Indeed, as Hayek pointed out, aggregates do not operate on other aggregates. As all economists other than Keynesians assert, supply generates demand. Expected demand for very specific products in specific sectors in specific geographical areas generate investment. With lower taxes, lower payroll taxes and of course fewer regulations, goods prices would be much much lower even with fairly high consumption taxes.
Rosemary2 Wrote: Dec 12, 2012 8:31 AM
Now wait a minute NewJAI, taxing consumption, even luxury taxes, diminishes the jobs that are created when those goods are produced. You are right, though, that we need to have a real discussion of what Government really needs to do. The Federal government does too much and does so in duplicate, triplicate and wasteful ways. But someone is benefiting from these unnecessary tasks, and the incremental cost is dispersed among too many to fight individually. That's the rub.

With all the talk about taxing the rich, we hear very little talk about taxing the poor. Yet the marginal tax rate on someone living in poverty can sometimes be higher than the marginal tax rate on millionaires.

While it is true that nearly half the households in the country pay no income tax at all, the apparently simple word "tax" has many complications that can be a challenge for even professional economists to untangle.

If you define a tax as only those things that the government chooses to call a tax, you get a radically different picture from...