Wednesday, November 27, 2002

More Taxes: We've discussed some of this before, but speaking of tax policy and the market (and of your point on pro-business deductions), two changes I'd like to see are:

1. A consumption tax. This puts the power in the taxpayers' hands. It is automatically progressive, and it deprives the IRS of its power, which is mainly based on you telling them everything you did with your money in the past year. Economic freedom in its essence requires no less.

2. A repeal of the corporate tax, but with an end to all subsidies. Speaking of market efficiencies, this one seems like a no brainer. It takes away some (but not all) of the need for businesses to create accounting lies and spin. It pays for itself through lower prices (particularly if we move to a consumption tax) and the automatic pork-cutting that would be the corporate cost for this pro-business policy.

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