Taxes and Work / was two currencies...

["Harry Veeder" <eo200@xxxxxxxxxxxxxxxxxxx>]

>Harry Veeder wrote;
>>
>>If the state theory of money is correct, then those people who are not
>>expected to pay *any* income tax will prefer not to work for money because
>>it will have no (tax) value.
>>Ironically then an incentive to work is to make sure everyone is paying some
>>income tax
>>no matter how small their income. Obviously the smaller the income the less
>>income tax
>>one will pay, but what is important is to get everyone paying some income
>>tax, even if
>>the amounts are tiny.
>

William F Hummel:
>This doesn't follow at all.  It leads to the absurd conclusion
>that the successful tax evader has no incentive to acquire the
>government's currency.


I don't think such a conclusion follows. If the majority
of people work for money to meet their tax obligations then
it makes sense for the tax evader to acquire state money because
he can claim goods and services from other dutiful taxpayers/workers.
In a certain sense the tax evader is a work evader.

>If you know a substantial fraction of the population needs the
>currency to pay taxes, you will be glad to work for that currency
>regardless of how much you have to pay in taxes yourself.

Perhaps but it is not an optimal state of affairs. One is happiest
working for money when they are meeting their own tax obligations,
not when they are working to meet other people's tax obligations.


> Only
>if the government were unable to enforce collection of taxes
>would there be a problem with its currency.  The widespread
>evasion of taxes will eventually destroy a currency.
>


If there is wide spread evasion of taxes then the government is
at fault for failing to formulate a beneficial tax system and to
ensure its consistent and fair implementation.

The State should make a concerted effort to respectfully collect taxes
from everyone even if the amounts have to be very small in the case
of the lowest income earners. By doing so the State is showing it
values all work for money equally and such an evaluation is
good for social harmony.

Harry Veeder