Negative Space: purchase tax
- Consumption vs. Income vs. Sales
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I would love to be convinced that consumption taxes are a better idea than income taxes. But I just don’t see how politicians wouldn’t find it easier to muck up a consumption tax worse than they’ve mucked up income taxes. Is convincing Americans to switch from an income tax to a sales tax an effective use of resources?
- Income tax vs. national sales tax
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There is no such thing as a fair tax. All we can do is try for the simplest, most unobstructive tax we can find.
- Is it better to tax incomes or purchases?
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Is it better in a democratic republic for the national government to tax incomes, with an income tax, or to tax purchases, with a sales tax?
- Punishing low-tax states
- An Internet sales tax that looks at the customer’s state instead of the seller’s state punishes states with low sales taxes and inhibits competition.
- Regulations cost money
- Regulations cost money. Do politicians really not understand this?
- San Diego’s proposition D: tax first, reform afterward
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San Diego’s proposition D is an attempt to raise taxes and then reform—which is, of course, an attempt to raise taxes and not reform anything at all.
- What’s wrong with a national sales tax?
- When considering a new tax, consider how easily that tax is abused by the state and by the state’s good intentions.
More Information
- Tax Oped—full version
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“Second, the government should tax consumption, not wages, income or wealth. When the government taxes savings, investment income, wealth or inheritance, it reduces the incentive to save, invest and build companies rather than enjoy consumption immediately. Taxes on capital gains discourage people from moving or reallocating capital toward their most productive uses.”
