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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?


To: neolib who wrote (91383)10/22/2008 2:23:28 PM
From: TimF  Read Replies (1) | Respond to of 541627
 
Why do you say that, other than the obvious issue of inefficiency in going round the loop?

Well there is the inherent inefficiency in going around the loop, then there is the additional dead weight loss of having to prepare taxes and having to change what you do in order to minimize taxes, then there is also the time value of money concerns, if you send $100 today and get it back in 6 months, you've taken a loss on the round trip.

As it is, far too many of the voters think the government is free and a source of income as well. Let them pay reasonable tax rates as well so they understand the governments bite out of their income, than make it clear that the assistance coming back to them is really welfare and it was taken from other people's pockets.

That's a decent argument but I'm not sure how well it works in reality. For one thing even if you do start having the poor pay taxes, there would be a political incentive to start "lessening the burden on the poor", and eventually "lessen the burden on the middle class".

Also if you take just a little from them and give back much more, and if there isn't any direct or obvious connection between what you give, and what you initially take, then I'm not sure that you really convey the feeling that supporting more spending costs money.