tag:blogger.com,1999:blog-2761684730989137546.post7228543447136874084..comments2024-03-28T07:50:06.102-04:00Comments on Mike Norman Economics: Bill Mitchell — Don’t let neo-liberal (idiots) loose with a spreadsheet!mike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2761684730989137546.post-63478033407807597532016-08-03T08:22:19.810-04:002016-08-03T08:22:19.810-04:00"How does a tax on the rich redistribute &quo..."How does a tax on the rich redistribute "purchasing power""<br /><br />It has to be sufficient to stop them spending on stuff, or get them to save rather than spend on stuff. <br /><br />Taxation is very imprecise. I prefer banning things - campaign contributions for example - or restricting bank lending, which definitely is for spending. <br /><br />NeilWhttps://www.blogger.com/profile/11565959939525324309noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-71222846262602737662016-08-02T15:10:27.819-04:002016-08-02T15:10:27.819-04:00"Offsetting transfer payments $4$ with specif..."Offsetting transfer payments $4$ with specific tax policy"<br /><br />agree but that is not what it says....Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-934014127226985542016-08-02T14:06:19.755-04:002016-08-02T14:06:19.755-04:00How does a tax on the rich redistribute "purc...<i>How does a tax on the rich redistribute "purchasing power"</i><br /><br />Providing tax credits increases purchasing power. Withdrawing them reduces purchasing power. Tax credits are claims on resources for sale in markets in that currency zone, as well as meeting tax obligations to the issuer.<br /><br />Taxes are not needed operationally but can be used for policy purposes, such as redistribution. <br /><br />Offsetting transfer payments $4$ with specific tax policy increases purchasing power of one cohorts while reducing the purchasing power of another cohort correspondingly. <br /><br />Michael Hudson recommends this as a way to reduce inequality and tax away economic rent simultaneously. This stimulates circular flow while also dis-incentivizing rent-seeking as a policy choice.Tom Hickeyhttps://www.blogger.com/profile/08454222098667643650noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-31636898759416714422016-08-02T13:46:56.604-04:002016-08-02T13:46:56.604-04:00"taxation revenue is never needed to raise fu..."taxation revenue is never needed to raise funds for the government in order that it can spend."<br /><br />But then:<br /><br />"The other reasons why a government might tax are: (a) To redistribute purchasing power from the rich to the poor (high income to low income) – a point that is obvious."<br /><br />?????<br /><br />How does a tax on the rich redistribute "purchasing power" (btw getting a little Andrew Anderson here with the "purchasing power" phrasing....) to the poor? i dont think this is obvious...Matt Frankohttps://www.blogger.com/profile/11978352335097260145noreply@blogger.com