3 ms·

Inflation is handled by superior spend side auto-stabilisers, like a Job Guarantee, and socially undesirable activities are done with levies and duties, not tax

Inflation is handled by superior spend side auto-stabilisers, like a Job Guarantee, and socially undesirable activities are done with levies and duties, not tax. The latter being a political position, not an economic one. If you have sufficient saving in society , then you hardly need to tax at all - as Japan demonstrates.

pydry 5y ago
It feels like you read about MMT but didnt really... get it? You're mixing up all the concepts. A job guarantee doesnt help keep a lid on inflation at all - quite the opposite (it keeps a lid on deflationary pressures). Levies and duties are...uh, taxes.
- neilwilson 5y ago
  In which case why am I writing chapters in MMT books alongside Warren Mosler and Bill Mitchell and you aren't? The Job Guarantee is designed as an automatic stabiliser that dampens inflation both expectational and financially as well as providing stimulation. It works like this: https://new-wayland.com/blog/how-the-jg-controls-inflation/ https://new-wayland.com/blog/how-the-jg-controls-inflation/ Levies and Duties are political deductions. They are not required. Taxes are required for the public purpose. No matter whether you are hard core libertarian or Stalin's best mate you will likely need to taxes that stay in place even if everybody does precisely what is required, because there are public positions that need to be filled. However if everybody stops smoking then cigarette duty naturally drops to zero. Taxes are best thought of as the secondary countercyclical stabilisers or the static payments required to Drive the Denomination. Warren, for examples, favours scrapping all taxes and relying upon a single property tax. Most importantly taxes are never altered by policy settings in response to the business cycle. They are set so the cyclical autostabilisers do their job - primarily on the spend side. Levies and Duties are set for the political purposes of whichever view is in power at the time. They come and go with the political cycle.
istinetz 5y ago
>If you have sufficient saving in society , then you hardly need to tax at all - as Japan demonstrates. ... do you think Japan has particularly low taxes or something? Because they don't, according to this: https://www.jetro.go.jp/en/invest/setting_up/section3/page7.html https://www.jetro.go.jp/en/invest/setting_up/section3/page7....
- neilwilson 5y ago
  Which is why they have been in a slump for this long. As Warren Mosler would say, they are overtaxed for the size of government they have.

pydry 5y ago

It feels like you read about MMT but didnt really... get it? You're mixing up all the concepts. A job guarantee doesnt help keep a lid on inflation at all - quite the opposite (it keeps a lid on deflationary pressures). Levies and duties are...uh, taxes.

neilwilson 5y ago
In which case why am I writing chapters in MMT books alongside Warren Mosler and Bill Mitchell and you aren't? The Job Guarantee is designed as an automatic stabiliser that dampens inflation both expectational and financially as well as providing stimulation. It works like this: https://new-wayland.com/blog/how-the-jg-controls-inflation/ https://new-wayland.com/blog/how-the-jg-controls-inflation/ Levies and Duties are political deductions. They are not required. Taxes are required for the public purpose. No matter whether you are hard core libertarian or Stalin's best mate you will likely need to taxes that stay in place even if everybody does precisely what is required, because there are public positions that need to be filled. However if everybody stops smoking then cigarette duty naturally drops to zero. Taxes are best thought of as the secondary countercyclical stabilisers or the static payments required to Drive the Denomination. Warren, for examples, favours scrapping all taxes and relying upon a single property tax. Most importantly taxes are never altered by policy settings in response to the business cycle. They are set so the cyclical autostabilisers do their job - primarily on the spend side. Levies and Duties are set for the political purposes of whichever view is in power at the time. They come and go with the political cycle.

istinetz 5y ago

>If you have sufficient saving in society , then you hardly need to tax at all - as Japan demonstrates. ... do you think Japan has particularly low taxes or something? Because they don't, according to this: https://www.jetro.go.jp/en/invest/setting_up/section3/page7.html https://www.jetro.go.jp/en/invest/setting_up/section3/page7....

neilwilson 5y ago
Which is why they have been in a slump for this long. As Warren Mosler would say, they are overtaxed for the size of government they have.