hukasmokincaterpillar
Member
Good post by Matt Bruenig on the tension between liberal ideology and unequal outcomes.
http://www.demos.org/blog/3/7/16/liberal-tax-justice
As Yglessias blithely notes, drawing the line on "middle class taxes" destroys progressive policy, categorically.
http://www.vox.com/2015/11/23/9780162/clinton-middle-class-tax
http://www.demos.org/blog/3/7/16/liberal-tax-justice
A person's disposable income is determined by the following formula:
Factor Income + Transfer Income - Taxes
Tax rates are typically defined as: Taxes / Factor Income.
The problem with that view is that it assumes Factor Income is some special thing that is deeply yours divorced from government policymaking. But this is simply not true. Each person's Factor Income is just as much a function of our publicly-imposed economic institutions as their Taxes and Transfer Income are. For it is government that creates and enforces things like property law, contract law, corporate law, bankruptcy law, securities laws, labor laws, employment laws, and every other economic institution that determines how Factor Income is distributed in the first place. Because the distribution of Factor Income is usually a result of government policy, it is an odd thing to fixate on as the baseline for determining whether another government policy, taxes, are just.
Taxes are but one institution among hundreds of economic institutions that collectively determine how income is distributed in society, not its own special thing deserving of its own special considerations. If you believe in equality, as liberals often claim to, then a just tax system is one that, in concert with other economic institutions, helps to create a fairly equal distribution of disposable income. In societies where the distribution of Factor Income is extremely unequal, like this US, "tax justice" may very well require high tax rates in excess of 50%. And that's fine.
As Yglessias blithely notes, drawing the line on "middle class taxes" destroys progressive policy, categorically.
http://www.vox.com/2015/11/23/9780162/clinton-middle-class-tax
The best and most effective American (and, for that matter, foreign) social programs are used — and paid for — by everyone, creating a virtuous cycle that keeps them reasonably effective and reasonably popular. Democratic communications professionals — including people who've worked for Obama and people who currently work for Clinton — swear the tax pledge is a political necessity. If that's true, it also speaks to a certain amount of intellectual bankruptcy in contemporary American liberalism. It's an ideology that stands for the creation of new government programs but won't stand up for the idea that these programs are actually sufficiently valuable to ask people to pay for them.