Index:
I. Introduction 2
II. Introducing the problem 2
III. Income vs. Consumption Tax 3
IV. A just tax base? 5
V. Liberutopia 6
VI. Conclusion 8
VII. References 9
Table of Figures:
Figure 1: Consumption vs. income tax 3
Figure 2: Floating money and deposit money 4
I. Introduction
In the debate of just taxation an argument came up, which insisted that any tax that distorts individual preferences should be considered as unjust. This argument is known as the “fairness-to- savers-argument”. The intention of this essay is to explain of what the fairness to savers argument consists, how to approach it and foremost why it is wrong.
At first I will therefore explain the argument on the basis of it’s most common example. The following chapter will then provide a better insight into to exact circumstances, under which the fairness to savers argument might arise. Here the functionalities of the, in the example presented, tax bases will be addressed. To approach the rejection of the argument correctly, it will be necessary to determine what exactly “just” means and this will lead us to some assumption, which need to be made to prove the argument wrong. But before that, I will present the approach Murphy and Nagel make in their book “The myth of ownership” and why they are not able to reject the argument completely. Afterwards I will introduce my approach, which basically will show, that any kind of taxation will distort individual preferences and there from I derive, that the fairness to savers argu-ment must be invalid.
II. Introducing the problem
The basic problem of the fairness to savers argument, is the effect of different tax bases on individual preferences. The name of the argument follows from it’s most vivid example, which I want to address at first, for a better understanding of the issue. The example is often illustrated with the comparison between two individuals preference for saving, both taxed once under an income tax and once under a consumption tax. Let’s consider two people, Steve and John, both earn in t0 100$, the rate of return is in every period constantly at 10% and they are in every aspect totally similar, despite their individual time preference, which is for Steve at 3% and for John at 9%. That means exactly, that Steve is willing to save his money as long he gets at least a net return rate of 3% and John is willing to save his money as long he gets at least a net return rate of 9%. In case their time preference is higher than the net return rate, the utility they derive from immediate consumption will be greater than the utility they derive from saving, thus they won’t save their money.
Taxes. We hate to love them and love to hate them. The mere mention of the word can stir heated debates and has done so for centuries. None was more prevalent than during colony times. During this time, on one side was the British Parliament while on the other side were the colonists, both arguing, either verbally or in written text, about which side did or did not have the right to tax the colonies. Soame Jenyns was one of these men who sided with the mother country in the tax debate.
I. You might have heard politicians in the news, talk about overhauling our tax system with a new fix-all idea, the flat-tax. This would simplify our overly complicated tax system and might seem appealing at first glance, however there are serious problems with it.
The most important person in Binx’s search is his half-brother Lonnie. Lonnie drags Binx out of his self-induced isolation with his approach to life. Binx doubts his individualistic life by seeing Lonnie’s resilience and insistence on love. For Lonnie, living with illness, everyday is authentic; everyday is a fight against mortality. Lonnie mirrors the completion of all the goals of Binx’s search. He is the only character who has successfully found the meaning that Binx searches for and therefore only requires Binx to be
The author is a editor and writer for a textbook publishing company. She argues that there are pros and cons of the system that is in place now, as well the new proposed flat tax system. With the flat tax system it would be easier for businesses and individuals because the tax would be simpler making taxes easier. There would be more drawbacks with the flat tax system such as: fewer jobs for accountants—no tax deductions. States would also be allowed to implement their own taxes. For those reasons they believe that the current tax system is the best system and people would not support a flat tax. The circumstances that cause the chapter to be written is that there could be a need for new textbook to be written. The purpose of the article is to educate students about the government, especially in America, this chapter was about taxation. The audience are students of either history or politics. He believes it will not be used in America: “The plans sound straightforward and have much to recommend them. But convincing voters and taxpayers to embrace them is a monumental task. People complain about their taxes, and the thought of taxation taking on a radically different form is a lot for people to
The digestive system is a group of organs that works together to convert food into energy and basic nutrients that will feed the entire body. The digestive system breaks down food so nutrients can be absorbed by the body. The digestive system has three main functions. First, it ingests food then breaks it down so nutrients can be absorbed and it also eliminates what cannot be digested.
This paper will take a close look at the concepts of the "flat tax," and look at the possible benefits and potential failings. Although there is a basic format to the flat tax, there are multiple flat tax proposals that have been offered by conservatives. Along with critiquing the basic format of the flat tax, this paper will compare an...
the example of taxation which is the first of its kind on this particular product. The author is
My parents are both from el Salvador meaning that there view of the world is old fashioned; Abortion is bad, gay marriage is unacceptable, child born out of wedlock could lead to disownments ect. While here in Canada it is socially acceptable to have abortions, to be gay or to have a child before marriage. My parents attempted to push their beliefs and ideologies on to me because that is what they thought to be right but, because I grew up in two different cultures who are basically the polar opposite of each other; I grew up knowing that there are no absolutes and that a person has to form their own conclusion based on their own experiences.
The main character, Alison, or the wife of Bath, is representative of most of the feminist ideals in the work. She is strong, independent, and to be respected as a woman of great courage. Alison has suffered a great deal in her lifetime, indicative of life for women at this time. She has survived five husbands; some of whom beat her, others were unfaithful. She was married off at an early age of twelve and from then on knew what marriage was about: money. "Marriage is the key to survival, and that is what Alisoun seeks and finds" (Carruthers 214), argues Mary Carruthers, justifying Alison's five marriages. Alison equates money with power. With this power comes respect and honor.
The theory of Cognitive Dissonance states that when individuals are presented with information that implies we act in a way that contradicts our moral standards, we experience discomfort (Aronson, Wilson, and Akert, 1998, P. 191). This is considered Cognitive Dissonance,
The current tax system that the United States uses contains several flaws. First of all, it is very complex. It is comprised of many various variables that can create loopholes. These loopholes can cause two equal income families to be paying very different tax rates. In fact, there are 480 different types of tax forms (Website). The current tax system is also very unfair for the wealthy. Because it is a progressive tax, it is higher for people who have higher incomes. People should not be punished for being successful. If a flat tax policy were instituted, then it would simplify the complicated tax system, create fairness within the economy, and promote a desire to thrive financially.
All people worldwide go through the process of moral reasoning, which has been defined as "a cognitive process by which individuals make decisions about moral issues and justify these decisions, regardless of the context of the issue" (Gardiner, 1998, p.176). But not all of these people come to the s...
The idea of supremacy and dignity are both present in The Wife of Bath’s Tale making it the central concept throughout the entirety of her story. It is assumed that her primary marriage was organized by her parents, even though The Wife of Bath does not mention them in her prologue, “experience, though no authority/ were in this world, is right enough for me/to speak of the woe that is in marriage; /for, my lords, since I was twelve years of age.” (Chaucer 285). In that time period, it is considered that the men, such as a father, husband or even a brother are supposed to protect the women in the family. Even though The Wife of Bath does not believe in being ruled by a man, she does however like to be married to one. One will notice that when a husband passed away or left, The Wife will move to her next husband. A marriage where the wife conquers over the husband is a perfect, blissful one according to The Wife of Bath. She discovers that it’s not too...
Carter, Susan. "Coupling the Beastly Bride and the Hunter Hunted: What Lies Behind The Wife of Bath's Tale." Chaucer Review, Vol. 37 No. 4 (2003), 329-345.
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