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jabailo
Joined: 21 Mar 2006
Posts: 860
Location: Kent (East Hill), WA
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 Posted: Thu Jan 28, 2010 11:31 pm Post subject: Asset vs. Income Tax |
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There was a small crossroads with two farms and two farmers.
One farmer has a fast and mighty flowing stream of water, and a little bucket. His stream flows so fast, that he only need fill the bucket once a day, to take home at night. He knows he will have fresh water in the morning and every day to water his crops.
The other farmer has a slow stream...some days it may even be dry. One time it was dry for an entire season. So he built a tower...a big tower that can hold months of water, enough for a whole summer and more of growing.
Then came the water tax collector.
He thought...shall I tax heavily the man whose river flows fast and mighty? Because each day he has so much water, that he will not miss it and will each day get more.
Or shall I tax the man with the tower...for I can assess what he has, and take a percentage and yet he will have enough for many months still.
Who should he tax? and how? |
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jabailo
Joined: 21 Mar 2006
Posts: 860
Location: Kent (East Hill), WA
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| Posted: Sun Feb 07, 2010 11:55 pm Post subject: |
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http://workingclassconservative.blogspot.com/2007/01/asset-tax.html
| Quote: | For a very long time, I’ve supported a switch away from the income (“productivity) tax and toward some sort of consumption based tax (ie. The Fair Tax; http://www.fairtax.org/)
I’ve even opposed the Flat Tax as a “half measure” that still puts the complete onus on productivity, doesn’t touch those in the “off-the-books” black market, nor those who don’t depend on income for wealth (the truly “rich”). |
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jabailo
Joined: 21 Mar 2006
Posts: 860
Location: Kent (East Hill), WA
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| Posted: Sun Feb 07, 2010 11:56 pm Post subject: |
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And in Hungary...
http://www.realdeal.hu/20100125/govt-expects-asset-tax-to-pass-constitutional-test
Gov't expects asset tax to pass constitutional test
| Quote: | The government expects its new tax on high-value assets to pass muster with the Constitutional Court as the tax was created taking the court's earlier decisions into mind, government spokesman Domokos Szollar said on Friday.
The tax is expected to affect just 5pc of taxpayers, Mr Szollar said. |
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jabailo
Joined: 21 Mar 2006
Posts: 860
Location: Kent (East Hill), WA
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| Posted: Thu Feb 11, 2010 7:52 am Post subject: |
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http://www.plantemoran.com/perspectives/articles/pages/change-in-mexicos-asset-tax.aspx
Change in Mexico's Asset Tax
| Quote: | In the past, the tax was calculated by computing the Mexican company’s net assets (gross assets less non-related party liabilities), and by multiplying that base amount by 1.8%. As mentioned above, this tax is only due when the asset tax calculated exceeds the company's income tax for the year. As such, the IMPAC did not apply to many companies since it only applied to net assets, and the reduction of the base by the company’s liabilities reduced the tax to an amount less than their income tax.
A few things have changed starting with the 2007 tax year. The positive side of the change to IMPAC involves a tax rate reduction from 1.8% to 1.25%. The bad news, however, is that the tax now applies to the net assets of the operation with no possibility of reducing the tax base for the company’s liabilities. |
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jabailo
Joined: 21 Mar 2006
Posts: 860
Location: Kent (East Hill), WA
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| Posted: Thu Feb 11, 2010 7:54 am Post subject: |
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http://www.progress.org/coburn01.htm
Consider Asset Taxation
| Quote: | Asset taxation is proposed as a unifying position for Georgists, Libertarians, Objectivists, Greens, and Natural Law groups. A proposal that can be supported by all and employed to move the current government towards a more rational and illuminating position.
[...]
Asset taxation is proposed to replace the current federal income tax and federal inheritance taxes with a 2% tax on the market value of all assets, including but not limited to land, improvements, licenses to use natural resources, and any and all properties that can be disposed of or rented to generate income to the owner. |
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jabailo
Joined: 21 Mar 2006
Posts: 860
Location: Kent (East Hill), WA
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| Posted: Wed Feb 24, 2010 6:07 pm Post subject: |
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http://seekingalpha.com/article/187945-three-easy-steps-to-fix-global-imbalances
Three Easy Steps to Fix Global Imbalances
| Quote: | A much better approach is “capital account protectionism.” Rather than getting into the messy business of interfering with the trade in goods and services, manage capital flows directly. The simplest way to do this is to tax (or subsidize) the purchase of domestic financial assets other than zero-interest cash by nonresidents. There need be no interference in Ricardian free trade, the exchange of present goods and services. But the cross-border trade in promises would be taxed and regulated.
I can already hear the cacophony of objections, and many of them are valid. Yes, clever people would quickly find ways to circumvent a financial asset tax, especially if implemented unilaterally by a single government. (Mutual enforcement would be preferable, but not essential.) Off-balance-sheet arrangements, clever swaps, would have to be controlled (but we have a lot of good reasons to want to do that). Transactions that multinationals now consider “internal” would become more costly and subject to scrutiny (but again, there are lots of reasons to think that supervising “internal” but international corporate flows might be a good idea, given how often these flows are tax motivated). A good regulatory regime combines tactical flexibility with clear goals to which regulators will be held accountable, creating incentives for regulatory innovation to counter circumvention. Those who think capital controls are always futile and doomed to failure are simply wrong. Sometimes they fail, and sometimes they work very well. |
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brian-hansen
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Joined: 18 Mar 2006
Posts: 419
Location: Oregon
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| Posted: Thu Feb 25, 2010 11:16 pm Post subject: Re: Asset vs. Income Tax |
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It is interesting, and perhaps not accidental that your story involves the value of water and the idea of water taxation.
| jabailo wrote: | | One farmer has a fast and mighty flowing stream of water, and a little bucket |
I've written elsewhere on YRIHF on why I think of water as the ultimate
organizing element in how humans should govern themselves. We
all have a common responsibility to protect our water sources, and
to organize ourselves such that a thirsty person can drink water, even
if poor. Water forms watersheds, the natural organizing unit of political
hierarchies.
Given the preciousness and sometimes rarity of water, I find it reasonable
to tax it. More precisely, to tax the consumption of it. Since there is
nothing in your story to suggest that one farmer used more, they would
pay the same amount of tax. |
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jabailo
Joined: 21 Mar 2006
Posts: 860
Location: Kent (East Hill), WA
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| Posted: Fri Feb 26, 2010 7:39 pm Post subject: Re: Asset vs. Income Tax |
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| brian-hansen wrote: | | I've written elsewhere on YRIHF on why I think of water as the ultimate organizing element in how humans should govern themselves. |
I believe you are referring to "Water Law"
http://you-read-it-here-first.com/viewtopic.php?t=1046&sid=ed4c9e5ebc5e06b4cc4236128279e60c
where although the word "tax" does not appear, you talk about it as a medium of exchange.
However, water is not central to my argument, as I am using it inversely to you. I use it as metaphor and it could be replaced by any substance which has a concept of both kinetic and potential energy (electricity for example) whereas you mean literally "water".
But in re-reading the article, water resources could be consider both an actual Asset and a barometer of other assets. A bigger house has more bathrooms would be a gross illustration of said and therefore, yes, we could apply the concept of Water Law in reference to Asset Taxation. |
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brian-hansen
Site Admin
Joined: 18 Mar 2006
Posts: 419
Location: Oregon
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| Posted: Sat Feb 27, 2010 12:05 am Post subject: |
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Water may be a special case. It is the clearest example of
a tax that is justified, and the clearest example of the necessity
of the "liberal floor".
Still, my conclusion does not depend on this. It could've been
buffalo chips. Assuming that there is good reason to tax them,
taxing consumption is the most fair and natural for your example. |
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jabailo
Joined: 21 Mar 2006
Posts: 860
Location: Kent (East Hill), WA
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| Posted: Sat Feb 27, 2010 12:23 am Post subject: |
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| brian-hansen wrote: | Water may be a special case. It is the clearest example of a tax that is justified, and the clearest example of the necessity
of the "liberal floor". |
I think I've given some ground on the "floor" in the past, although I have said that my problem is more in quantifying it, rather than accepting the concept. However, you might respond, that with water, it's fairly easy (5 quarts a day for humans, or whatever).
However, I guess I'm a bit more concerned about "the ceiling" than the floor in this case.
| brian-hansen wrote: | | Still, my conclusion does not depend on this. It could've been buffalo chips. Assuming that there is good reason to tax them, taxing consumption is the most fair and natural for your example. |
I for one would not say so. |
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brian-hansen
Site Admin
Joined: 18 Mar 2006
Posts: 419
Location: Oregon
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| Posted: Sat Feb 27, 2010 12:39 am Post subject: |
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| Okay. |
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jabailo
Joined: 21 Mar 2006
Posts: 860
Location: Kent (East Hill), WA
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| Posted: Thu Mar 18, 2010 10:35 pm Post subject: |
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It appears that the Reconciliation Health Care plan will be funded in part by what is essentially an asset tax:
http://www.washingtonpost.com/wp-srv/special/politics/health-care-5-questions/
"The reconciliation package would keep the Senate's tax but scale it back, while adding a new Medicare tax on wealthy taxpayers' interest and dividend earnings."
If true, that's the most radical part of the plan and I like it! |
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jabailo
Joined: 21 Mar 2006
Posts: 860
Location: Kent (East Hill), WA
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| Posted: Fri Mar 26, 2010 10:37 pm Post subject: |
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Time for a tax on assets not income to pay for Healthcare
http://seminal.firedoglake.com/diary/32628
| Quote: | | We need to stop taxing income and tax assets a one time 10%, 20 % tax on the assets of the richest 10% should cover it. Middle Class America however has no cash forcing us to pay when we have debt on homes worth less than the price we bought them at means we can’t pay! |
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Visit the Instant Postcard Collection @ http://instant-postcard-collection.com
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jabailo
Joined: 21 Mar 2006
Posts: 860
Location: Kent (East Hill), WA
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| Posted: Fri Mar 26, 2010 10:45 pm Post subject: |
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Health care bill extends wage tax to investments
http://news.yahoo.com/s/ap/20100319/ap_on_bi_ge/us_health_care_taxes
| Quote: | Section 1411 of the bill, “Imposition of Tax,” also provides that the surtax would be applicable to any estates or trusts held by taxpayers falling into those brackets.
Unearned income is comprised of funds gained outside of a paycheck from an employer—largely from capital gains, dividends, annuities, and rental income. |
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