Last week I wrote a couple of posts about the Hardy Boys and magical ponies, although actually they were about marginal vs. average and statutory vs. effective taxation. Today, we get to the good stuff: how much more should the rich pay? It makes sense to start, however, with how much they already do pay.
When Mitt Romney made that infamous “47%” remark, it didn’t take long for people to shoot that full of holes. But, in my previous post on taxation, I also said that the idea of corporations getting away with not paying their fair share was also dumb. You might ask “Why’s that?” I’ll assume that you did ask, and give you the answer in this post. With magical ponies.
I’m going to write about taxes. Probably not the smartest move if I want to attract more readers (which I do), but I’ve got two things going for me. First: I’ll shamelessly target nostalgia with some gratuitous Hardy Boys references. Secondly, I’m betting that a lot of people are as tired of hearing bumper-sticker political arguments as I am. Topics like marginal vs. average tax rates or statutory vs. effective taxation might not sound thrilling, but you know what’s even less thrilling? Listening to your relative tell you that he’s going to “go Galt” if he has to keep supporting that slacker 47%. Or maybe hearing your high school buddy argue that it’s criminal for corporations to get out of paying their fair share of taxes. (If you don’t know why one or both of those is stupid, just keep reading. Soon you will.)
I did not like Red Mars (by Kim Stanley Robinson or just KSR) very much. I was pretty clear about this in my Goodreads review, where I gave the book a solitary star. I got a couple of responses to that review, and they asked me to go into more detail about the problems I had with that book. So, in this post, I shall. Along the way I can promise fun with economics and political philosophy for everyone!
In most cases where the the politicians debate about policy they can usually cite a bevy of economic experts, academic papers, and think-tank research to bolster their respective positions, but there are some issues where the experts pretty much all agree and the politicians don’t want to hear it.
One fun example is the tax plan NPR asked 5 economists to create that–though it reflects pretty unanimous economic consensus–is a political non-starter with either the Democrats or the Republicans. (Hint: removing the mortgage interest tax deduction doesn’t make anyone happy.)
Another example that’s like that is price gouging.