There's a feeling in some parts of the left in the UK that low US fuel taxes are symptomatic of the libertarian anti-left strain of American politics.
I think this disconnect between perception and reality highlights the importance of stopping using identifiers such as "left" and "right" for complex issues.
The US governments will likely hit a wall soon - further tax increases on the rich will possibly yield little/no new revenues. Many suspect that a VAT and higher taxes on the poor/middle class - where 66% of the income is after all - is inevitable.
It's rather hard to run an aggressive modern welfare state by leaning heavily upon those whom earn 33% of the income!
>further tax increases on the rich will possibly yield little/no new revenues.
Possible, I suppose. I'd need to see evidence.
>Many suspect that a VAT and higher taxes on the poor/middle class - where 66% of the income is after all - is inevitable.
Who are the many who suspect this? And on that note - your "whom" should be "who". Apologies for the pedantry.
I'd really like to see some reputable articles to back up your assertions, purely because I've not heard anyone make them before. I don't mind if you don't provide them, of course, you don't owe me anything, I'd just appreciate it if you did.
>I'd really like to see some reputable articles to back up your assertions, purely because I've not heard anyone make them before. I don't mind if you don't provide them, of course, you don't owe me anything, I'd just appreciate it if you did.
Hey James,
Firstly there is the simple fact of arithmetic. 33% vs 66%. The 33% is already quite heavily taxes, the 66% much less so. Which bloc is able to fund a welfare state?
Tyler Cowen and The Money Illusion and to a lesser extend EconLib are my primary sources in these discussions (basically the GMU econ mafia plus a few outsiders). This is a very politically similar cadre for me to harvest my ideas from, but they pay quite a bit of attention to outside theories. Regardless, if you want 'articles' you'll find them there.
Another possibility is a one time wealth tax. This has some pull because it can easily target only the very rich, but also has some pretty big issues due to it's inherent "Banana Republic-ness." But it can happen.
The VAT just seems likely because almost every OECD country uses them, it's potentially politically feasible, and the amount of revenue it can raise is enormous. It also doesn't have the Banana Republic features of a wealth tax.
And I like my "whom"'s, grammatically correct or otherwise :)
There's a feeling in some parts of the left in the UK that low US fuel taxes are symptomatic of the libertarian anti-left strain of American politics.
I think this disconnect between perception and reality highlights the importance of stopping using identifiers such as "left" and "right" for complex issues.