Oct

20

Fairness, from anonymous

October 20, 2016 |

 My daughter Eddy used to be interested in the question of Fairness. Not any more. "Since it is not a question of whether but only one of where and when, why bother?"

But we do still talk about it with regard to taxes. We still laugh over her reaction to her first paycheck (issued for cleaning the animal cages at the local vet's office on the graveyard shift). "Who is this bitch FICA and why is she getting my money?"

The best that the two of us have come up with for a "fair" tax system is our own variation of the Major League Baseball "luxury tax" and revenue sharing model. Under the collective bargaining agreement that expires this year, each team in MLB puts roughly 1/3rd of its own revenues into a pool. The money in the pool is then divided up and distributed equally to each team. In 2016 the richest teams (those in the 15 largest markets) no longer received their share as a payout but instead received a credit against their revenue share to be paid the following year. (This was, IMHO, an artful way of assuring that the rich teams would agree to have revenue sharing as part of the next CBA.)

The Eddy and I conclude that FDR's unerring political instincts were wise policy. (When his Marxist academic advisers wanted Social Security to be means-tested, he told them to get real. The American people would only support a program that had a fundamental equality; if you paid into the system, you got something out of it.) We would like to see all government benefits to have the same recognition of the Constitution and its equal protection clause; if a benefit is paid to someone simply for breathing, then everyone gets it. If the government collects taxes, then everyone pays the same rate.

Eddy's final word: "Never going to happen, Dad. Too simple and too fair."

Alston Mabry writes: 

This reminds me to recommend an excellent recent EconTalk:

How are those in favor of bigger government and those who want smaller government like a couple stuck in a bad marriage? Economist John Cochraneof Stanford University's Hoover Institution talks with EconTalk host Russ Roberts about how to take a different approach to the standard policy arguments. Cochrane wants to get away from the stale big government/small government arguments which he likens to a couple who have gotten stuck in a rut making the same ineffective arguments over and over. Cochrane argues for a fresh approach to economic policy including applications to growth, taxes and financial regulation.


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1 Comment so far

  1. Steve on October 23, 2016 7:09 pm

    The only fair tax is a zero tax.

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