On Feb 2, 2011, at 6:35 AM, Ira Glazer wrote:
> The paper, by the Fund's modelling unit, warned of "disastrous consequences"
> for the world economy unless workers regain their "bargaining power" against
> rentiers. It suggests radical changes to the tax system and debt relief for
> workers. "
How does a 'tax on economic rents, etc ' [below] differ from a capital [gains?] tax in affecting capital movement?
martin
"Any success in reducing income inequality could therefore be very useful in reducing the likelihood of future crises. But prospective policies to achieve this are fraught with difficulties. For example, downward pressure on wages is driven by powerful international forces such as competition from China, and a switch from labor to capital income taxes might drive investment to other jurisdictions. But a switch from labor income taxes to taxes on economic rents, including on land, natural resources, and financial sector rents, is not subject to the same problem."