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One motivation for such taxation would be precisely to encourage people to spend money closer to the time it is earned.
by gbhn 13y ago
One motivation for such taxation would be precisely to encourage people to spend money closer to the time it is earned.
- yetanotherphd 13y agoI don't doubt that this counts as a plus in some people's books. However in my opinion it is a very bad motivation. Even Keynes never advocated permanently stimulating consumption (vs saving), he only wanted to do this during recessions. I've never heard an economically sound reason for wanting to shift people's preferences from saving to consumption in ordinary times.