4 ms·

The Fair Tax plan was a neat idea. Tax everyone at X percent, while giving everyone back Y dollars per month as a form of UBI. The values of X and Y are chosen

by swebs 7y ago

The Fair Tax plan was a neat idea. Tax everyone at X percent, while giving everyone back Y dollars per month as a form of UBI. The values of X and Y are chosen so those below the poverty line gain more money than they are taxed. https://en.wikipedia.org/wiki/FairTax https://en.wikipedia.org/wiki/FairTax

rklaehn 7y ago
I was a huge fan of this concept. It has been invented independently by people on the right (Milton Friedman) and the left. But unfortunately that is not how politics works. Politics is selling a particular group an advantage over the majority in exchange for votes. That is true both for the left and the right, the only difference is which groups they target. And a fair tax is just too simple. Politicians wouldn't have anything to sell anymore...
- 3fe9a03ccd14ca5 7y ago
  > And a fair tax is just too simple. Politicians wouldn't have anything to sell anymore. You’re right! Without the ability to carve out exceptions, why would a powerful lobby need to come with a proverbial suitcase a cash?
  - rklaehn 7y ago
    The sad thing that just the two parameters basic income and flat tax rate are flexible enough for a wide variety of policies. Want scandinavian style socialism: set the basic income very high and have a high flat tax rate of maybe 50%. Want a more individualist approach: set basic income to the bare necessities and set the flat tax rate to 25%. Want to borrow to fight against a recession, keynesian style: increase basic income without raising flat tax rate. Want to save for bad times: increase flat tax rate without raising basic income... I guess this kind of system can only emerge due to some drastic change or historical accident. E.g. the eastern european countries have a flat tax system because after the collapse of the soviet union there was no complex incumbent system in place. I would love to know if there is a way to get to such a system using the normal democratic process. But if it exists, I don't see it.
    - deleted 7y ago
      [deleted]
jmpman 7y ago
Although these tax systems likely poll well, all tax systems are just transfer functions. Any tax system which results in significantly reduced taxes for the >1% raises my suspicions. If you couples this system with an inheritance tax of 100% for greater than $10M, I’m interested.

by swebs 7y ago

rklaehn 7y ago

I was a huge fan of this concept. It has been invented independently by people on the right (Milton Friedman) and the left. But unfortunately that is not how politics works. Politics is selling a particular group an advantage over the majority in exchange for votes. That is true both for the left and the right, the only difference is which groups they target. And a fair tax is just too simple. Politicians wouldn't have anything to sell anymore...

3fe9a03ccd14ca5 7y ago
> And a fair tax is just too simple. Politicians wouldn't have anything to sell anymore. You’re right! Without the ability to carve out exceptions, why would a powerful lobby need to come with a proverbial suitcase a cash?
- rklaehn 7y ago
  The sad thing that just the two parameters basic income and flat tax rate are flexible enough for a wide variety of policies. Want scandinavian style socialism: set the basic income very high and have a high flat tax rate of maybe 50%. Want a more individualist approach: set basic income to the bare necessities and set the flat tax rate to 25%. Want to borrow to fight against a recession, keynesian style: increase basic income without raising flat tax rate. Want to save for bad times: increase flat tax rate without raising basic income... I guess this kind of system can only emerge due to some drastic change or historical accident. E.g. the eastern european countries have a flat tax system because after the collapse of the soviet union there was no complex incumbent system in place. I would love to know if there is a way to get to such a system using the normal democratic process. But if it exists, I don't see it.
  - deleted 7y ago
    [deleted]

jmpman 7y ago

Although these tax systems likely poll well, all tax systems are just transfer functions. Any tax system which results in significantly reduced taxes for the >1% raises my suspicions. If you couples this system with an inheritance tax of 100% for greater than $10M, I’m interested.