Assumptions could put trillions of dollars of policy changes on the table, or not
Thanks for this helpful synopsis.
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
Thanks for this helpful synopsis.
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