September 22, 2010

Here is a nice article on taxes which  touches on two things I always considered important.  First  – when you have certain level of skill and income you can pick almost any place in the world to live.  Moving to different country is not really different than moving to different neighborhood or different state.   Move of course affects your proximity to family, friends, your current work place or principal place of business, things you got use so it is far from simple arithmetic choice.  Still this is just a magnitude difference.

The next data point which I like is “particularly the nearly 50% of eligible voters who pay no federal income tax”.   I’m not sure if numbers are correct but it does not make much difference if it is 50% or 30% – this is a very large group of voters.    This makes benefits paid to no people paying no taxes and a positive externality while it is negative externality for the small group of payers of majority of the taxes.  What we know about externalities is what they do not help with wise and fair decisions.

Fairness is an interesting thing to begin with. When dealing with the crowd  you can convince and rally people around basically any cause.  Lynching would be the good example of  such a “fair” treatment.

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