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Sun, Dec 30 2012 14:26:07

Twitter Round Table on Consumption Taxation

  1. mileskimball
    Miles Kimball@mileskimball
    We should be focusing on helping the poor, not taxing the rich. Baby, You're a Rich Man on.wsj.com/V9O6ja
    Sun, Dec 30 2012 09:10:31
  2. mileskimball
    Miles Kimball@mileskimball
    Greg Mankiw: There is no realistic solution to our budget problems without raising taxes on the middle class. http://www.nytimes.com/2012/12/30/business/on-middle-class-tax-rates-too-much-wishful-thinking.html?smid=pl-share&_r=1&
    Sun, Dec 30 2012 10:59:33
  3. mileskimball
    Miles Kimball@mileskimball
    Hurray for dividends! Low dividend taxation would make asset markets more rational and stable. Dividend Revolution? on.wsj.com/TuS06u
    Sun, Dec 30 2012 09:19:08
  4. CDO_SQUARED
    CDO@CDO_SQUARED
    @mileskimball just get rid of corporate income tax and tax dividends as regular income.
    Sun, Dec 30 2012 09:37:27
  5. mileskimball
    Miles Kimball@mileskimball
    .@CDO_SQUARED That still distorts the dividend payout decision. Instead, get rid of all corporate & capital taxation and tax consumption.
    Sun, Dec 30 2012 09:47:32
  6. mileskimball
    Miles Kimball@mileskimball
    .@CDO_SQUARED See my post "Scrooge and the Ethical Case for Consumption Taxation" blog.supplysideliberal.com/post/387403794…
    Sun, Dec 30 2012 09:49:01
  7. mileskimball
    Miles Kimball@mileskimball
    .@CDO_SQUARED BTW: I am counting a value added tax (VAT) as a consumption tax, not a corporate tax.
    Sun, Dec 30 2012 09:50:33
  8. omzidar
    Owen Zidar@omzidar
    @mileskimball isn't there some disagreement on this in the tax lit - for mature firms, can be nearly lump sum owenzidar.wordpress.com/2012/11/25/sho…
    Sun, Dec 30 2012 10:07:06
  9. mileskimball
    Miles Kimball@mileskimball
    .@omzidar The true non-distortionary tax for mature firms is to force them to issue non-voting stock to give to the government.
    Sun, Dec 30 2012 10:23:17
  10. mileskimball
    Miles Kimball@mileskimball
    .@omzidar But as usual with capital taxation, they would have to convince people they would never do it again: blog.supplysideliberal.com/post/264138557…
    Sun, Dec 30 2012 10:24:36
  11. mileskimball
    Miles Kimball@mileskimball
    Taxing big spenders is better than taxing the rich. Many of the rich got there by doing good. But there is no nobility to big spending.
    Sun, Dec 30 2012 10:13:41
  12. altmandaniel
    Daniel Altman@altmandaniel
    In theory, yes. To fight inequality, no. (bigthink.com/econ201/taxati…) RT @mileskimball: Taxing big spenders is better than taxing the rich.
    Sun, Dec 30 2012 10:17:08
  13. mileskimball
    Miles Kimball@mileskimball
    .@altmandaniel Taxing big spenders fights inequality in consumption.
    Sun, Dec 30 2012 10:25:30
  14. altmandaniel
    Daniel Altman@altmandaniel
    But not inequality in access to opportunity, the most important kind. RT @mileskimball Taxing big spenders fights inequality in consumption.
    Sun, Dec 30 2012 10:46:20
  15. tomashirstmoney
    Tomas Hirst@tomashirstmoney
    .@mileskimball But surely there's a behavioural cost to loading tax onto consumption? Why privilege stored wealth over actual use of it?
    Sun, Dec 30 2012 10:17:32
  16. mileskimball
    Miles Kimball@mileskimball
    .@tomashirstmoney Consumption taxes are still distortionary. But to do better, you need to go to some kind of tagging: blog.supplysideliberal.com/post/244704829…
    Sun, Dec 30 2012 10:27:44
  17. delong
    J. Bradford DeLong@delong
    @mileskimball plus if we tax big spenders, we tax high wealth twice!--once when it was earned, and now when it is spent! #progressive
    Sun, Dec 30 2012 10:15:21
  18. mileskimball
    Miles Kimball@mileskimball
    .@delong Not what I had in mind. Let's have consumption taxation only.
    Sun, Dec 30 2012 10:26:05
  19. delong
    J. Bradford DeLong@delong
    @mileskimball But we have taxed current wealth through our income tax! I'm fine with taxing C only going forward with no transition rules
    Sun, Dec 30 2012 10:27:15
  20. mileskimball
    Miles Kimball@mileskimball
    .@delong Agreed. No transition rules needed.
    Sun, Dec 30 2012 10:28:34
  21. mileskimball
    Miles Kimball@mileskimball
    .@delong Going to consumption taxation without transition rules is OK because it's a credible commitment not to tax capital in the future.
    Sun, Dec 30 2012 10:30:41
  22. mileskimball
    Miles Kimball@mileskimball
    .@delong And going to consumption taxation without transition rules is a credible commitment not to double tax in the future.
    Sun, Dec 30 2012 10:32:11
  23. OwenMoss
    Owen Moss@OwenMoss
    @mileskimball @delong talks of C tax always end "but all existing wealth has already been taxed." Way to get around that is pol feasible?
    Sun, Dec 30 2012 10:41:11
  24. mileskimball
    Miles Kimball@mileskimball
    .@OwenMoss @delong To avoid an effective cut, Social Security needs to be made enough more generous to make up for the consumption tax.
    Sun, Dec 30 2012 10:46:58
  25. FPanunzi
    Fausto Panunzi@FPanunzi
    @mileskimball @delong No income tax at all?
    Sun, Dec 30 2012 10:29:58

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Miles Kimball

Professor of Economics and Survey Research at the University of Michigan

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