One other point I left out of my post pertaining to a different part of his which I inadvertently deleted . . .
> >>> ... it still remains true that income taxes are substantially
> >more progressive (or at least less regressive) than sales taxes. And its
> >much easier to institute a progressive income tax than a progressive
sales tax. . . .>>
>
> Max responds:
>
> >"Easier" how? Politically?
>
> I actually meant technically. It's easy to set up an income tax structure
> that is progressive, just eliminate all or most deductions. On the other
> hand, to figure out the effects of a sales tax, you have to know something
> about consumption patterns. I'd actually be interested to know if anyone
> has heard of a broad-based sales tax that is progressive (setting aside
> specific taxes on luxury goods, which bring in little revenue).>
Actually it's just as easy to set up a progressive consumption tax "technically" as a progressive income tax. All that need be done is to allow persons a deduction for net saving -- net purchases of financial assets minus net sales of same -- on a return much like the present one. There would still be a standard deduction, graduated rates, exemptions, and if desired itemizable deductions.
Another type of consumption tax -- the flat tax -- could also be made progressive. Simply tax wages and pension distributions at graduated rates, apply the top rate to net business income, and add a tax on inheritance. This is all possible with the flat tax base. There are other administrative and economic problems with the tax, but that's a separate story.
A progressive sales tax (or VAT for that matter) -- the only sort of consumption tax Prof Gaspar evidently knows of -- is indeed not feasible.
> As for the political question, I didn't address it. Of course one is not
> likely to hear much about progressive taxation from the Republicrats, but
> for anyone who wants to rebuild a working-class movement in this country,
> the slogan "tax the rich" may well be a useful one. Did I say
> "working-class movement"? I'm sorry, that's beyond the bounds of what
Max's realpolitik tells him is possible. Better put up with existing
inequalities then.>
Yuk. This list is the only place in the universe where I can be described as stricken by "realpolitik."
That's why I'm here. I get daily reassurance that there are other people crazier than me.
> I don't want to be Max's friend either (God forbid). My comment referred
to his views on tax policy, which are friendly only to the wealthy parasites
who benefit from existing tax policy.>
Would that these parasites understood their interests and my activities so well and moved expeditiously to oil my crankcase. That reminds me . . . where's Shawgi Tell these days? Has he improved his writing style and assumed an alias?
MBS Defender of the Rich