Believe it or not, there is such a thing as a good tax.

A good tax raises the required government revenue by not only treating equals equally, but also by requiring more from those who will be hurt the least.

However, that is not all: a good tax is also a tax that is administered simply, transparently, and in a “neutral” way.

“Neutral” means it does not cause individuals and corporations to behave differently; in other words, the tax respects the outcomes of the marketplace (unless of course prices do not accurately reflect the true costs and benefits of an activity. In this case the tax might be used to explicitly correct these market failures.)

This confronts Occupiers with a dilemma.

Continue reading “Inequality and Occupy Wall Street 6: tax principles for occupiers” →