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I often wonder about a tax system that just works on inflation. Why does a govt go out of its way to collect taxes if it's also going to print money? To me it's
by mentos 10y ago
I often wonder about a tax system that just works on inflation. Why does a govt go out of its way to collect taxes if it's also going to print money? To me it's so that you can tax different entities at different rates. But if we're willing to adopt a flat tax of X% I wonder if it could be collected through inflating everyone's dollar?
- raverbashing 10y agoThis is a very good way of making the poor even more poor
- ojno 10y agoPerhaps if you were to only use the created money for welfare etc? (Not that I'm optimistic that such a system could come about in practice, or that I'm an economist.)
- derefr 10y agoWhat are US treasury bonds going to be valued at by foreign investors under this scheme? Inflation can do whatever you like if your country's economy is a closed system; it can't give you money to pay debts to other countries with.