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Comments on: It’s a hard road, trying to figure out what economists love http://www.tvhe.co.nz/2012/07/23/its-a-hard-road-trying-to-figure-out-what-economists-love/ The Visible Hand in Economics Tue, 04 Dec 2018 17:27:05 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Ben http://www.tvhe.co.nz/2012/07/23/its-a-hard-road-trying-to-figure-out-what-economists-love/#comment-39197 Mon, 23 Jul 2012 00:45:07 +0000 http://www.tvhe.co.nz/?p=7239#comment-39197  Instead, impose a consumption tax, designed to be progressive to protect lower-income households.

This bit I don’t understand at all – I thought consumption taxes werre a terrible way to restribuite income. Didn’t we just have this debate with Labour’s GST policy? And it’s expensive.

 

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By: DetMackey http://www.tvhe.co.nz/2012/07/23/its-a-hard-road-trying-to-figure-out-what-economists-love/#comment-39196 Mon, 23 Jul 2012 00:40:58 +0000 http://www.tvhe.co.nz/?p=7239#comment-39196 Yes, the fourth is very strange.  As I said on Danyl’s post on the same topic:

We like income, so why tax it?’, they ask, but then go on to suggest a consumption tax. People don’t like income by itself. People like income because it allows them to purchase and consume things! We like consumption, so why tax it?
There are legitimate reasons why we might favour a consumption tax over an income tax, and vice versa. Would have been nice to see those reasons outlined as opposed to some silly ‘consumption is bad’ statement.

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By: Matt Nolan http://www.tvhe.co.nz/2012/07/23/its-a-hard-road-trying-to-figure-out-what-economists-love/#comment-39194 Sun, 22 Jul 2012 22:55:49 +0000 http://www.tvhe.co.nz/?p=7239#comment-39194 “How does this work?”

A saver by definition has a bunch of earned income that they can dissave (to get consumption) in the future.  A borrower has to earn more income in the future to pay for past consumption.

By lifting income taxes and cutting consumption taxes, you are then lifting the average tax rate paid by people that have saved up until that point (as they aim to consume more than they aim to earn) and push down the average tax rate for people who have borrowed (as they have to target earning more than they will spend on consumption).

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By: Will http://www.tvhe.co.nz/2012/07/23/its-a-hard-road-trying-to-figure-out-what-economists-love/#comment-39192 Sun, 22 Jul 2012 22:03:05 +0000 http://www.tvhe.co.nz/?p=7239#comment-39192 <blockquote>a switch from income to GST taxes is an immediate transfer from savers to borrowers</blockquote>
 
How does this work?

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