This is the start of the current front page of Chris Tolworthy's excellent website, answersanswers.com
An easy way to save the world:
phase out all taxes
| Results | Objections | Examples |
We pay 40% tax
When you buy something it
usually includes tax. And the manufacturer buys her parts from from
someone else who pays tax, and passes on the cost as a higher price.
Every stage in manufacture adds on a slice of tax. Tax
is usually around 40 percent of everything we buy. (For the USA, click here)
Taxing goods raises prices by 67%
In order to pay 40% tax, a
product that costs $100 in total (including all stages of manufacture)
must be sold for $167. There may be a big market for products that sell
for $101-$166 but they can never be made. (On average - see objections)
What if we taxed land instead?
What
if we said, "this year,
pay the same tax as last year, but call it land tax instead." (Then
slowly adjust to market rates.) Once you have made all your $167
products and
paid the tax you could then make extra products and sell them for $101
each.
Simpler tax leads to market forces
A single land tax makes your relationship with government very
simple. So if you are not happy with government you can make a deal:
"we will use less X if you lower our tax" or "we will pay more if you
let us do Y." If they do not agree to a fair offer then they have less money, and lose votes.
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