Subject: Tax reform Comment: In order to discuss tax reform one must correctly frame the issue. It is this: how to provide revenue for the operation of government. It is not how to stimulate the economy; it is not how to raise revenue easily; it is not how to raise revenue painlessly. Second, one must address how to raise revenue fairly. This involves identifying the beneficiaries of government. In this process one better defines the purposes of government. For example if a purpose is to transfer wealth then fairness is thrown out the door. In which case stimulating the economy, easy and painless will win. If the purpose is to provide infrastructure then fairness will dominate and lead one to the conclusion that a progressive income tax is the fairest. It targets those who accumulate wealth from use of infrastructure and nature's resources. |