Mama Free Bird's Economics Plan (user search)
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Author Topic: Mama Free Bird's Economics Plan  (Read 2413 times)
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CrabCake
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« on: October 12, 2015, 12:21:17 PM »
« edited: October 12, 2015, 12:32:59 PM by Crab »

A progressive corporation tax sounds fun in theory, but it isn't always so. It would effectively subsidise unprofitable start-ups which don't employ a lot of people, and penalise the salaries of working-class grunts who work for wall-mart.

The consumption tax exemptions, (from somebody who supports the general idea) are less simple than you think. Here are the current  VAT rates for my country:

https://en.wikipedia.org/wiki/Value_Added_Tax_(United_Kingdom)#Rates

Hardly a less complicated system! In particular, you have a constant stream of lobbyists trying to reclassify their products as essential, and other such shenanigans. (Witness the debacle when the government tried to reclassify hot take-away as under the standard-rate, as opposed to cooled-down-heated-goods which would fall under the reduced rates. Or the legal dilemmas surrounding the Jaffa Cake - is it a cake (no VAT) or is it a chocolate-covered biscuit (standard rate, although biscuits without chocolate do not pay VAT for some reason).

Tariffs are always bad.

The medical stuff sounds good from a left perspective, BUT it would hit a brick wall as effectively handing hospitals and clinics blank cheques would be a bad idea. You would have to dramatically increase oversight, maybe even quasi-nationalise them. That would increase the old worry of "government panels" picking and choosing who gets Lifesaving Treatment A.

What percentage of each tax would make up the government revenue? I assume with elimination of the income and payoll taxes, the bulk would be paid for by consumption tax, or perhaps more feasibly a VAT? as in that darn FairTax plan?
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