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Comments on: Cut GST for fruit and veg? http://www.tvhe.co.nz/2007/12/02/cut-gst-for-fruit-and-veg/ The Visible Hand in Economics Mon, 03 Dec 2007 10:39:57 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Matt Nolan http://www.tvhe.co.nz/2007/12/02/cut-gst-for-fruit-and-veg/#comment-558 Mon, 03 Dec 2007 10:39:57 +0000 http://tvhe.wordpress.com/2007/12/02/cut-gst-for-fruit-and-veg/#comment-558 “I suspect that complicating the tax code would would be a effective way of making government bureaucracy creakier!”

🙂 yes. But if you are going to go full out and introduce an incentive tax, you should do it in a way the most simple to administer and transparant fashion (unless there is a tradeoff between these two factors, in which case we just have to make it up).

]]> By: Richard http://www.tvhe.co.nz/2007/12/02/cut-gst-for-fruit-and-veg/#comment-559 Mon, 03 Dec 2007 07:41:20 +0000 http://tvhe.wordpress.com/2007/12/02/cut-gst-for-fruit-and-veg/#comment-559 I suspect that complicating the tax code would would be a effective way of making government bureaucracy creakier!

]]> By: Matt Nolan http://www.tvhe.co.nz/2007/12/02/cut-gst-for-fruit-and-veg/#comment-562 Mon, 03 Dec 2007 00:11:40 +0000 http://tvhe.wordpress.com/2007/12/02/cut-gst-for-fruit-and-veg/#comment-562 “I’m not sure why you advocate a separate mechanism for subsidising consumption. If it’s entirely on the basis of bureaucratic ineptitude then what reason do you have to trust any government intervention to be welfare improving?”

True true, we are just introducing a subsidy which is the equivalent to a lower tax. The main reason I want GST and incentive taxes to be separate is just to keep the accounting of them separate. By recording them separately we can easily keep track of what is going into the general fund, and what is being spent in order to achieve a specific social goal. If a new government then wants to remove it, its just needs to take off that tax.

It would be best if we could collect it in the same way as GST (just add a tick box or something to the form) but then keep the figures separated in accounting terms.

I think the people that create the policy and the people who implement the policy are different. I’m pretty much calling those who implement it incompetent (eg WINZ, good damn them) but keeping faith in those that create the policy.

]]> By: rauparaha http://www.tvhe.co.nz/2007/12/02/cut-gst-for-fruit-and-veg/#comment-561 Mon, 03 Dec 2007 00:05:11 +0000 http://tvhe.wordpress.com/2007/12/02/cut-gst-for-fruit-and-veg/#comment-561 Isn’t the instrument here the price, though? So any mechanism that works through the price to encourage consumption of fruit and veg is equivalent to a cut in GST on those goods. I’m not sure why you advocate a separate mechanism for subsidising consumption. If it’s entirely on the basis of bureaucratic ineptitude then what reason do you have to trust any government intervention to be welfare improving?

]]> By: Fat tax? « The visible hand in economics http://www.tvhe.co.nz/2007/12/02/cut-gst-for-fruit-and-veg/#comment-560 Sun, 02 Dec 2007 03:18:27 +0000 http://tvhe.wordpress.com/2007/12/02/cut-gst-for-fruit-and-veg/#comment-560 […] 2 12 2007 Following the discuss on lower GST for healthy foods I feel it is appropriate to discuss the other side of the coin, a tax on inherently unhealthy food, […]

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