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Politics : The Citizens Manifesto
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To: Road Walker who wrote (266)7/6/2005 1:06:00 PM
From: TimF  Read Replies (1) of 492
 
Tax policy effects things, it doesn't just raise revenue. Even a toll on a road will cause some people not to use that road.

Not all effects or manipulations are equal.

For example the idea of a progressive tax scheme, might not really be a manipulation (you aren't trying to discourage wealth). And it applies in a relatively clear way to broad categories of people. It isn't highly specific, and in the US at least is not massively punitive.

The mortgage interest deduction was created to encourage home ownership and/or help homeowners. It is an intervention or manipulation, but it could be more of one if it was structured differently. For example it would be a much greater intervention if the deduction was larger for houses that where bought on a Tuesday, or if it only applied to houses that were painted blue. Its true that neither of those specific interventions is likely, but the point is that the manipulation can always increase, even if you consider tax policy to be "ALL manipulation". You can have more policies that intervene in more areas. You can intervene to a greater extent (a $50 tax credit or deduction or penalty might be ignored when people plan their lives, a $5000 effect has more impact). Or you can make people jump through more and more hoops to get the bonus or avoid the penalty.

Tim
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