Re: What if and Why of Zero Taxation

[larson@xxxxxx]

Quoting Harry Veeder <eo200@xxxxxxxxxxxxxxxxxxx>:

> Capitalist style production/consumption wouldn't be viable without
> taxation. Through taxation, the world of money and prices
> is pressed into the social future making forward production
> possible.

You can accomplish that by means of debt. Taxes can solve moral problems, but
are not the only means to do so. Every cent taxed is a transfer of control over
purchasing power from individuals to the collective. Experience from both sides
of the Atlantic tell us that small governments are less damaging to the economy
once they begin to mess things up by means of public spending and taxes. A well
managed public sector can, in theory, process 60, even 70% of GDP and only make
good contributions. But the risks with big governments - in fact, ANY
government - is that pruden budget balancers take charge. And then we're in
more trouble the bigger the government is. With a consitutional ban on budget
surpluses (and, even better, mandatory deficits of a percentage of GDP that
matches the rate of unemployment) we can keep adherents of the Holy Budget
Balance out of legislative power.
/srl

--
Sven R Larson
PhD; Assistant professor of economics
Department of Social Sciences, Bldg. 22.2
Roskilde University
Pb 260
DK-4000 Roskilde
Telephone: (+45) 4674 2910