Monday, September 21, 2009

on taxation policy (various issues)

Why is it so difficult for policy makers to design a simple and effective tax system?7

The so called "Tobin Tax" on every financial transaction proposals. Unlikely to be agreed. But anyway:

a) how will it reduce risky behavior by banks?
b) can it be applied globally? Can pressure be applied to all country to adopt?

There is a saying in Belgium: "trop d'impots pas d'impots"
It means that too high tax rates = less business + jobs = less tax revenue
Can policy makers thus find that "optimal"-balance point without going over?

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