Post

Late night idea spitballing, 1st edition Just some unresearched thoughts from someone about as far from an expert on the subject as one can get 🧵

Should taxation be about negative externalities? What if we made taxes about accounting the true cost of companies’ actions rather than “raising revenue?”

Economics 101 concept: negative externalities are the cost to society or a third party of a party’s actions. It’s borne by everyone, not just who caused it.

There are many taxes already proposed or implemented along these lines: carbon tax, tobacco tax, etc. I also think land value tax fits a similar mold. If you take the perspective that the world is the common heritage of mankind, then private use of land detracts value from society’s “portfolio.”

Not arguing we discourage private ownership, but taxing based. Effectively pay a rent to society for using some of their land.

Similarly I feel there are some bad taxes: flat sales tax doesn’t make sense (and if you have to PLEASE use VAT), pure property tax is unfair, etc.