tag:blogger.com,1999:blog-4900303239154048192.post5337435551994282829..comments2024-03-06T06:34:42.881-05:00Comments on EconoSpeak: Reducing Financial Complexity: A Different Take on Transaction TaxesUnknownnoreply@blogger.comBlogger8125tag:blogger.com,1999:blog-4900303239154048192.post-55464791037951714592009-11-28T08:35:35.893-05:002009-11-28T08:35:35.893-05:00Mankiew questions Krugman on transaction taxes.Mankiew questions Krugman on transaction taxes.Shag from Brooklinehttps://www.blogger.com/profile/07312591102812315460noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-41296509085681315772009-11-27T10:51:47.107-05:002009-11-27T10:51:47.107-05:00Peter,
Does Krugman's column today (11/27/09) ...Peter,<br />Does Krugman's column today (11/27/09) pick up on this topic?Shag from Brooklinehttps://www.blogger.com/profile/07312591102812315460noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-70506220893162341072009-11-21T18:37:33.008-05:002009-11-21T18:37:33.008-05:00You can think of the tax on a transaction as a use...You can think of the tax on a transaction as a user fee. After all, who is expected to enforce the terms of the contract, provide a court system, and provide the underlying title and currency?Kalebergnoreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-3521417677848813182009-11-21T12:32:20.735-05:002009-11-21T12:32:20.735-05:00Anonymous said:
"Taxing transactions is prob...Anonymous said:<br /><br />"Taxing transactions is problematic. That is why we tax profits. Unfortunately, we do not tax capital gains profits the same as wages."<br /><br />The problem with our tax system is that it is not progressive and improperly designed to encourage true capital development. In 1936 the marginal rate on entrepreneurial income of what is now $250K was 15% while the rate on 3 million was 64%. In 1941 the marginal rates were made more progressive and the 3 million was taxed at 71% while the $250K was taxed at 39%. The tax rate on normal working people who earned what would now be $50k was 13%. Meanwhile, the capital gains tax rate was simply half the ordinary rate. So the tax on "capital gains" of 3 million was 36%. <br /><br />So if you want to fix the tax code just reinstate the code from 1941 that understood <a href="http://en.wikipedia.org/wiki/Economic_rent" rel="nofollow">"economic rent"</a>, and that taxation of economic rent <b><i>DOES NOT</i></b> adversely affect true production. Homes are not capital because they are not used in production. They are durable goods. And <b>LAND</b> according to any <b>real</b> economist is <b>LAND</b>. As such these do not qualify for "capital" gains treatment. Capital is trains and trucks and producing enterprises. And since money is also not capital then banks and insurance company stocks do not qualify for capital gains tax treatment either. If you want a capital gains tax break then build a productive enterprise. Even "UPS", and "Safeway" would qualify. "AIG" need not apply.TheTruckerhttps://www.blogger.com/profile/10346127768102862741noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-24392108681958446222009-11-21T09:29:19.992-05:002009-11-21T09:29:19.992-05:00bakho says:
Taxing transactions is problematic. T...bakho says:<br />Taxing transactions is problematic. That is why we tax profits. Unfortunately, we do not tax capital gains profits the same as wages.<br /><br />We need a "bailout" tax to recover our tax dollars spent on our financial sector from profits they record and from money and stock options they pay to CEOs.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-66472835045222685632009-11-20T16:15:10.850-05:002009-11-20T16:15:10.850-05:00Is what is proposed sort of a sales tax on financ...Is what is proposed sort of a sales tax on financial transactions? How might it apply to consumer banking? What kind of rates might be appropriate? Would such a transaction tax be on top of income tax on a transaction?Shag from Brooklinehttps://www.blogger.com/profile/07312591102812315460noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-86167100631371801082009-11-20T14:35:58.261-05:002009-11-20T14:35:58.261-05:00In my opinion a tax on swapping paper is a fine id...In my opinion a tax on swapping paper is a fine idea simply because it won't change anything of real economic importance at all. Like a tax on land values it will not distort the real economy and it provides a source for the public funds.<br /><br />DOIT!TheTruckerhttps://www.blogger.com/profile/10346127768102862741noreply@blogger.comtag:blogger.com,1999:blog-4900303239154048192.post-38801549426525529982009-11-20T07:48:54.651-05:002009-11-20T07:48:54.651-05:00Do you have a definition for "transaction&quo...Do you have a definition for "transaction"? I have some familiarity with the Internal Revenue Code and taxable and non-taxable transactions addessed therein, as well as some familiarity with tax policies involved in particular for non-taxable transactions. Are you suggesting that all "transactions" be taxable?Shag from Brooklinehttps://www.blogger.com/profile/07312591102812315460noreply@blogger.com