Hi Lane,
Your recent post on my use of "fairness" finally provided the incentive for me to respond to your post questioning the use of the concepts of fairness and efficiency in tax policy.
You wrote:
"Both efficiency and fairness are too subjective and individualistic to be objectively useful. Efficiency didn't use to be subjective but now we have operational efficiency meaning and the capitalism meaning. The meanings are almost contradictions, a contronym. I can't imagine getting a consensus on either ever. We thrash ourselves to death trying."
And later you wrote:
"Seems to me that trying to apply fairness is an impossible snarl to get into. We tax those at the very top of the income scale because, as Willie Horton said, "that's where the money is." And because there are lots more middle class voters. Fairness is a figment. Is it fairer to tax young families to support seniors or the converse? Any debate about that is inherently GIGO, IMO."
There are instances where it's imperative that we analyze and apply such concepts. Those concepts, and the choices we make with respect to them, are what create good families, good neighbors, good countries and good civilizations.
There are many important issues in our everyday lives that we decide based on subjective metrics like "fairness" and on arguably less subjective metrics, such as "efficiency."
Even little choices like who should get the last cookie,..."I ate the apple and, besides, I'm trying to keep my weight down"... or who should drive the "good car"..."yes, it's my turn, but you're traveling farther and if you break down you're more vulnerable than I am."
Why shouldn't we, or why can't we, use that same analytical process in determining relative tax rates? Ed
PS, And why do you allege that analyzing "efficiency" in setting tax rates is "too subjective?"
Economists routinely examine the effects of various policies, including tax policies, on the general economy and on certain subgroups within the economy. While they are sometimes wrong, their predictions are based on empirical data that can be objectively quantified and analyzed and, after the changes take effect, the accuracy of their analysis can be ascertained.
Tax policy analysis of "efficiency" is not witch-doctor science.
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