Monday, September 21, 2009

Taxing Behavior

Social Engineering begins with taxes.  Can you change human behavior with taxes?  I think the answer is a resounding no and yes (micro and macro).  First the no (micro level) -  look at the regressive tax on gas, cigarettes, alcohol, purchases, and I'm sure there are others.  So do these taxes prevent you from driving, smoking, drinking and shopping at the mall? 
So what about the yes (macro level). How about not living in Ohio for 6 months?  How about a business moving somewhere just to have lower taxes?  How about investing in Muni Bonds?  How about avoiding estate taxes?
Funny - we accept the taxes at the penny by penny level and politicians like that because it is "hidden" from our day to day view (sales tax, excise tax, payroll withholding- that we can thank Milton Friedman for that idea - , ss tax, medicare tax, vehicle registration, etc. 
I think about the time I consume thinking about taxes, preparing my annual taxes, planning for future taxes.  Such a waste of productivity.  That's the real tax - taxing my productivity.

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