I think you have a clever way of addressing the state's rights thing. I just dont think that will do anything critical or have a net improvement on the way things are. I'm entirely apathetic to the predicament states find themselves in. Am I missing an importance factor here?
I would say you are but then again, I am the one disagreeing with you
Simply put, power should be as decentralized as possible. It is one of the cornerstones of this nation and we are flowing power to a single source on a daily basis.
This is now a debate on the purpose and responsibility of taxes.. We will have to separate tax credits/deductions from bailouts, as bailouts are not parts of our tax code. I'm not a fan of subsidy, but I don't support taking away an effect just because I'm not a fan of the cause. Tax law doesn't single out companies, but does cater to special interests (circumstances) nation-wide. I don't see a problem with that. Is there a particular tax code you don't care for or is it this broader concept?
Re: no reasoning: All of our laws and taxes are reasoned before we hear about them. That process is more elaborate than our conjecture here. By looking at the details of how and why certain things have been done PRIOR to criticizing them, I feel that the reasoning behind our tax system is vastly more considered than any of the proposed changes. So I support the status quo. It is better thought out. Those thoughts, and my own whereby to understand them, are behind my statements on the matter.
Because I'm supportive of the status quo over simplicity proposals, I feel there's less to explain about the repercussions of change without a specific tax code under scrutiny. Is there some specific deduction you really hate?
If you wish to separate then, fine. As far as particulars, no. I don’t like any of them at all and that includes the ones that I currently enjoy having and have invaded the market for so long that they would be extremely difficult to root out. The mortgage deduction is a good example of this. Why do we have such a deduction? To encourage you to purchase a home? That is asinine. If you want a home, you should weight the benefits with the costs and make the decision clear of government interference in your decision. The entire thing has become a vote purchase.
“The American Republic will endure until the day Congress discovers that it can bribe the public with the public's money.”
- Alexis de Tocqueville
This is exactly what is happening and it is all covered by your (and those that believe the same) defense of the ‘status quo’ and the false idea that some grand amount of ‘reasoning behind our tax system is vastly more considered than any of the proposed changes.’ You want to know what this ‘vast amount of reasoning’ actually is; what will get me more votes. That’s it and it is not good.
I am familiar with Pigou's case for sophisticating the tax system, Undoubtedly all developed economies have incorporated some pigouvian tax elements for the reasons him and many others have indicated. Can you go into more depth about what makes this asinine?
I actually don’t mind the concept altogether but this is an entirely different matter. Tax law is not structured in any way shape or form according to Pigou’s case. As I understand it, this is the concept that some products cost society more and therefore those items need to have that hidden cost built into the product. An example would be cigarettes and the health problems they cause. I would call these sin taxes and I actually believe that we should have sin taxes for specific vices but the structure of those added taxes should be very specific. Let me explain my problems and solutions concerning current sin tax and what I think they should be.
First, as sin taxes currently exist, it is a scheme to extract more money out of the system without losing support of the voters. For instance, Washington recently passed such a law on ‘sugary’ products. The idea was that other tax proposals were not popular but they were able to sell the sin tax because the majority of people believed that the tax would not affect them so what do they care. On top of this, collections from these taxes do not go to counterbalance the negative costs of the target. The taxes on this sugary product did not go to any health problems associated with the product itself. They went into the general funds where they are spent on whatever pet project they want to use them on. Essentially, there is no counterbalance of ‘hidden’ societal costs for the taxed products. Instead, it is a vehicle to increase taxes without actually increasing taxes. Lastly, they create a negative cycle in that as the tax works to decrease the usage of the product through higher price, the tax collections DECREASE. This creates an income hole because the tax itself was completely unrelated to the societal costs in the first place so the ever increasing need will be to increase the tax or expand on new taxes with new product to cover the gap.
Now, for what I believe should constitute a proper ‘sin’ tax. I have to agree that there are product that cause undue side effects that tax monies need to pay for and if this is the case, I believe it is justified to apply a specific tax to pay for it. In these cases, the monies collected from the tax should be treated as a separate entity that ONLY goes to alleviate the given burden. Using this method you remove the incentive for politicians to use it as a way around paying the political price for raising taxes. You also eliminate the diminishing collections as the product usage goes down because the lower usage leads to lower costs fighting the vices that it brings.
None of this has anything to do with my original point though
Companies everywhere lobby governments everywhere. The purpose of politicians responding to lobbyists on a perk-size basis is similar to the way they respond to other constituents on an electoral-map basis. I feel democracy is an effective way for a government to participate in the development of the country its named after. This is what the govt's expected to do.
Yes, it is but NOT in the manner that it is doing so now. Sorry, it is not nor should it be ‘expected’ that the government operate on a preferential basis for the representatives biggest financial backers. This is akin to saying that people in Colorado’s 11th district should get a tax break that no one else receives because their rep managed to get one passed in a bill. Sorry but that is not how things should work.