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Ric Mayer's avatar

Thanks for this helpful synopsis.

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Thomas L. Hutcheson's avatar

Ideally, we should treat this as an opportunity to shift resources from consumption to investment by

a) reducing the Σ(expenditures with NPV< 0)

b) reducing deficits to Σ(expenditures with NPV>0)

c) taxing consumption, not income, by

1) substituting a VAT for the wage tax (directed at financing social insurance)

2) eliminating business income taxes

2) moving the personal income tax toward a progressive personal consumption tax

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