tag:blogger.com,1999:blog-3395111825224617694.post8692767738182529415..comments2023-12-18T16:32:44.437-08:00Comments on Caveat Emptor: The Coming Class WarH.A. Blackhttp://www.blogger.com/profile/09028988783310116580noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-3395111825224617694.post-37389284327885570702008-10-23T11:56:00.000-07:002008-10-23T11:56:00.000-07:00Dr. Black,Is there a developed nation that has suc...Dr. Black,<BR/><BR/>Is there a developed nation that has successfully shielded their tax system and it's control from political pressure? I am thinking an institution similar to the US Fed could exist with success.Steven Monahanhttps://www.blogger.com/profile/04138482186711219302noreply@blogger.comtag:blogger.com,1999:blog-3395111825224617694.post-34318550799615976512008-10-23T08:47:00.000-07:002008-10-23T08:47:00.000-07:00Very interesting post, Harold. You raise issues of...Very interesting post, Harold. You raise issues of efficiency and equity that will surely resonate with many people, especially those who think in the tradition of market-oriented economists and who have to deal with the complex income tax codes at the state and federal level. I've also been sympathetic to notions of a "flat" tax over the years for the reasons you mention. <BR/><BR/>My current thinking is a bit less clear. My sense today is that the split among people in this country is already well underway and growing after many decades of relatively balanced growth. This split is in terms of income and wealth, but also in terms attitudes about the ideals many of us espoused and the difficulty of visualizing a bright future. For example, my sense is that the cost of raising a family is just daunting to many young people, especially when one attempts to provide higher education, health care, decent housing, and the like. I'm fortunate that my wife and I have been able to do this reasonably well, but I surely sympathize with many young people who wonder whether hard work and a modest education will allow them to do for their children what we've tried to do for ours. <BR/><BR/>With this in mind and if my premise is "true", the issue is how to address the growing divide. Perhaps a more redistributive income tax might allay some of the angst and sense of injustice that seem to exist and lead to a greater desire by those in the bottom income and wealth groups to see opportunities for personal growth and development. Many who benefit from such a system might be quite willing to do their part in the future to help others. <BR/><BR/>Alternatively, and as you say, perhaps spending programs are the way to go, e.g. housing and education vouchers. However, recall Milton Friedman's espousal of the negative income tax as an alternative, which is just another form of a progressive income tax. <BR/><BR/>In any event, thanks for stimulating the discussion. <BR/><BR/>jimAnonymousnoreply@blogger.com