15 Comments
Jul 30, 2022Liked by Andrew Van Wagner

Obviously everyone has the obligation to change their mind as their ideas and the facts on the ground change but Baker was included in a 2012 article where economists on the left and right were asked to come up with ideal (not necessarily politically achievable) policies. The list included eliminating corporate taxes entirely. https://www.npr.org/sections/money/2012/07/19/157047211/six-policies-economists-love-and-politicians-hate And I am pretty sure (though I can't find the source) Baker has also argued that the main purpose of taxation generally is to decrease consumption when inflation is a risk. Taxation is not needed to fund government activity or to redistribute wealth in a fiat currency. But I'm not an economist - I just find these ideas intriguing.

Expand full comment
Jul 30, 2022Liked by Andrew Van Wagner

Caveat: Baker says a broad consumption tax alternative is not desireable unless an efficient and effective wealth audit system can be devised.

Expand full comment
author

Where did Baker say this?

Also, what's the relevance? There's nothing in my above piece about a "broad consumption tax alternative", right?

Expand full comment
author

Thanks for commenting!

Is there any evidence that Baker himself supported all of those policies on that list?

Expand full comment

A foolproof way to reduce consumption? That’s not the desired goal generally.

Expand full comment
author

Of taxation?

Expand full comment

Reduced consumption is a byproduct of taxation, which is why you would have higher taxes in areas where you want reduced consumption. Gas, cigarettes, alcohol etc

That in mind, some economists would argue that the general corporate tax rate should be 0%, precisely because you do not want to reduce consumption.

Expand full comment
author

Do you not see why economists might want to use taxation in order to reduce consumption? I'm not being snarky; I'm just saying that you could find out very quickly if you asked around.

Expand full comment

Right now they might but in a normal state of affairs you would generally not want to reduce consumption.

Expand full comment
author

Just ask economists; if you really want me to answer I will, but I genuinely think that you could get the answer to your question in two seconds from any economist.

Expand full comment

I haven’t found anything that says consumption is bad for economic growth

Expand full comment