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Tuesday, September 30, 2008

Taxes in Libertopia

John Shuey wrote:

JS) First, to be really effective, all "real" property would need to be nationalized (JS

Why?

JS) any attempt to modify the Land Tax to fit our present situation by necessity leaves other taxes in place (JS

That could be said of any proposed tax reform.  In Libertopia, land value taxes would be accompanied by taxes on consuming, congesting, and polluting the commons.

JS) The single most Libertarian tax I know of is a consumption tax on ALL (JS

A consumption tax, like an income tax, taxes a good instead of taxing a bad.  Thus a consumption tax (like an income tax) has a http://en.wikipedia.org/wiki/Deadweight_loss.  It's better than taxing income, but it's not optimal. For details, see http://knowinghumans.net/2008/01/tax-bads-and-untax-goods-with-green-tax.html.

George Donnelly wrote

GD) The concept of a libertarian tax* does not exist. It's an oxymoron. *(tax being defined as: a sum of money demanded by a government for its support or for specific facilities or services, levied upon incomes, property, sales, etc.) (GD

A libertarian tax on aggression is not an oxymoron.  Monopolizing, consuming, polluting, or congesting the commons are each aggression if they violate the Lockean proviso to "leave as much and as good" when using the commons.