[lbo-talk] cruise report

Max B. Sawicky sawicky at verizon.net
Wed Aug 1 11:41:40 PDT 2007


Actually evasion rates on VATs in Europe are comparable to the U.S. rates -- about 13%.

Capital budgets are overrated. http://clinton3.nara.gov/pcscb/wt_kucinich.html

A separate grand 'pre-bate' or other transfer gadget coupled with a VAT would be a sitting duck, politically-speaking. Not out of the question, but pretty risky IMO. Something more integrated with a direct consumption tax is more plausible.

--

Doug wrote:
>
>> Why does nobody mention Gravel?
>
>He supports a consumption tax.
>
But what's wrong with that? A Value-Added tax, with an advance rebate (for which Americans would be quick to invent the barbarous neologism "prebate") equivalent to the tax on consumption of the requisites for a basic level of health and comfort, would be the most progressive tax possible--not least because it would be largely evasion-proof. It would also have a profound political effect by exerting continuous upward pressure on the level of consumption that Americans would define as the minimum acceptable level of health and comfort for everyone.

Of course advocating sensible policies is a death-trap for US politicians. Who remembers Milton Schaap and his call for Federal budgeting to recognize the kindergarten-level concept of different Capital and Expense budgets?

Shane Mage

"This cosmos did none of gods or men make, but it always was and is and shall be: an everlasting fire, kindling in measures and going out in measures."

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