I would like to know if holding the following positions will create distorsions in the economy (given that I'm not abolishing ALL taxes, or ALL trade barriers), or are in the correct way to gain more freedom. If it's possible I would like answers be backed by biblography (articles, essays, books, etc.):
- Supporting a reform in labor regulations only applying to small business? (I think this creates distrosions against big business)
- Lowering taxes (or abolishing them) ONLY for the most poors of the country.
- Lowering taxes only for some sectors of the economy.
- Abolishing trade barriers (when exporting) only for some industries.
I support all reductions in regulations even to specific businesses. Regulations limit freedom so fewer will allow some individuals to be freer.
I support lowering taxes. I would prefer that government lower taxes across all income groups.
Businesses do not pay taxes, individuals ultimately do so. I recommend that all businesses have taxes of 0.
Trade barriers are simply regulations and item 1 applies here.
Supporting a reform in labor regulations only applying to small business? (I think this creates distrosions against big business)
My initial thought is that distortions are already heavily in favor of big business.
Lowering taxes (or abolishing them) ONLY for the most poors of the country.
The way the tax code works, let's say that the bottom tax bracket (currently $0-$17,000) was lowered from 10% to 0%. People who made under $17,000 would pay no taxes. However, everyone else would hypothetically pay $1,700 less in taxes as well. So currently, it's not even possible to lower taxes only for the poor without changing this. I say hypothetically because people don't really pay income taxes this way. There are so many deductions, that the "effective tax rate" has little resemblance to what the tax brackets say you should be paying. See here: http://www.cbo.gov/publications/collections/tax/2009/effective_rates.pdf
Lowering taxes for the poor would probably mean giving them more money.
Lowering taxes only for some sectors of the economy.
Distorting the balance of sectors in the economy seems like it would be a very bad thing.
Abolishing trade barriers (when exporting) only for some industries.
I might need to know what the specific case was.
"I know that it is a hopeless undertaking to debate about fundamental value judgments."-Albert Einstein
Generally speaking, reductions in tax and regulation are a good thing. However, for any given level of tax, it's pretty widely recognised that the lower the rate and the broader the base the less harmful distortion it causes. Cutting taxes on only some parts of the economy might be acceptable in the unrealistic example that it is a stand-alone policy one is given an either/or option on, but it's silly to actually hold such a position as a policy you advocate for. Regulation is a bit different, as there is no real way to quantify a net level of regulation in the same way as there is in tax. Therefore regulation reductions should be supported wherever they occur.
Bogart: Businesses do not pay taxes, individuals ultimately do so. I recommend that all businesses have taxes of 0.
That is what I have always thought, but would you mind explaining this Lew Rockwell quote to me? It seems to not agree with that:
On a smaller point, in reacting to a caller who wanted higher energy taxes, Hannity correctly opposed this economic destructivism. But his reason was idiotic.
Corporations don't pay taxes, he claimed. They just pass them on to the consumers. Wrong. Corporations are already charging the highest prices they can, consistent with the highest profits, as they should. Higher taxes hurt the productivity of the corporation, which also hurts consumers. But taxes cannot, all other things being equal, be "passed on."
Ok, thinking about it, Hannity and I are incorrect as we are speaking about a competitive long run MicroEconomic ideal and not a real firm. The real firm can not "Pass On" a tax to consumers through HIGHER PRICES because they would naturally charge the highest price they are able to. But, they can pass on a tax increase by providing poorer quality or less service.