An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
'michael hudson says: February 28, 2012 at 6:03 am Thanks for your supportive comments. We had a Pacifica reporter there, Bonnie Faulkner, who will be editing the sound tapes and providing a set of follow-up interviews. Also, I believe that Stephanie Kelton will be repeating her wonderful presentation on her site. All that is needed is to verbalize her power point presentation.
Michael Hudson says Stephanie's lecture was one of the best he has ever heard.
The charts show that government borrowing balances private saving. Does that reflect 1. An unwillingness of the public to agree to income taxes, or 2. That contractual saving via pension and insurance funds is very high and needs balancing assets?
All government expenditure is an allocation of the income of the nation, so all taxes bear on income whatever they are assessed on. The income rich should prefer anything to income tax, as all other taxes hit the poor harder.
Since taxes don't fund a national government that is sovereign in its currency, taxes have two major purposes. First, to withdraw non-government net financial assets previously injected through deficit expenditure in order to maintain price stability, and secondly, to increase the disincentive on negative behavior. Thus, the ideal tax is on economic rent and negative externality, as Michael Hudson never tires of pointing out, rather than inhibiting production, with a consequent loss of employment.
BTW, the taxes that the wealthy hate as much as progressive income taxes are capital gains and inheritance taxes. The extremely wealthy don't even mind income taxes that much, since they can shape the tax code to avoid them with complicated tax shelters which only they have the $ to afford use of.
4 comments:
Unfortunately my Italian isn't that good. Does this exist without the translation overdub?
If you check:
http://www.nakedcapitalism.com/2012/02/michael-hudson-2181-italians-pack-a-sports-arena-to-learn-modern-monetary-theory-%E2%80%93-the-economy-doesn%E2%80%99t-need-to-suffer-neoliberal-austerity.html
There is a comment by Michael Hudson:
'michael hudson says:
February 28, 2012 at 6:03 am
Thanks for your supportive comments. We had a Pacifica reporter there, Bonnie Faulkner, who will be editing the sound tapes and providing a set of follow-up interviews.
Also, I believe that Stephanie Kelton will be repeating her wonderful presentation on her site. All that is needed is to verbalize her power point presentation.
And by the way, we DID take separate planes!'
There does not appear to be anything new at NEP.
Michael Hudson says Stephanie's lecture was one of the best he has ever heard.
The charts show that government borrowing balances private saving. Does that reflect 1. An unwillingness of the public to agree to income taxes, or 2. That contractual saving via pension and insurance funds is very high and needs balancing assets?
All government expenditure is an allocation of the income of the nation, so all taxes bear on income whatever they are assessed on. The income rich should prefer anything to income tax, as all other taxes hit the poor harder.
Geoffrey Gardiner
@ Geoff Gardiner
Since taxes don't fund a national government that is sovereign in its currency, taxes have two major purposes. First, to withdraw non-government net financial assets previously injected through deficit expenditure in order to maintain price stability, and secondly, to increase the disincentive on negative behavior. Thus, the ideal tax is on economic rent and negative externality, as Michael Hudson never tires of pointing out, rather than inhibiting production, with a consequent loss of employment.
BTW, the taxes that the wealthy hate as much as progressive income taxes are capital gains and inheritance taxes. The extremely wealthy don't even mind income taxes that much, since they can shape the tax code to avoid them with complicated tax shelters which only they have the $ to afford use of.
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