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Great links. > interest rate costs have gone about as low as they can. Another part is by depressing real wages. The only way for profit growth to continue on
by sooheon 4y ago
Great links.
> interest rate costs have gone about as low as they can. Another part is by depressing real wages. The only way for profit growth to continue on this model is to further depress real wages.
The third variable is taxes -- we could always reduce sales/income taxes, and replace them with economically efficient taxes like the land value tax.
- jmyeet 4y ago> The third variable is taxes One of the charts in the submission shows that effective corporate tax rate continues to drop (from ~30% to ~15% over the last 2 decades). How much lower do you want it to go? Also, if you replace the method of taxation (eg sales/income to land value use as you suggested), that's still a tax, meaning the only way to lower taxes is to... lower taxes. Changing the method of taxation doesn't inherently do that.
- sooheon 4y ago> How much lower do you want it to go? Well ideally, 0. > Changing the method of taxation doesn't inherently do that. Yes it does. Different taxes have variable economic effects -- a tax on cigarettes is different from a tax on yachts is different from a tax on rent. Some taxes are inherently inefficient and put downward pressure on GDP. Others, like LVT, incentivize economic efficiency and achieve better equality by preventing exploitative rent seeking.