|Well this blog does not have a topic, occasionally themes, but is a place for the bunny muse.|
Occasionally Eli ventures into the realm of economics. Recently there was a debate on the Wall Street Journal site between Max Sawicky (in the red trunks) and Tyler Cowan (in the brown) on tax policy. A lot of Steve Forbes friends came out to cheer, mostly for the Flat Tax, getting rid of tax on business (e.g. on them), etc. Eli is not much amused by this attempt to shrink government income until it can be drowned in a bathtub. Katrina shows that the tub can be your city or town and there is a fair amount of collateral damage. I posted this in the comments section, but since the topic arises as the living dead from time to time, I thought I would put it here in order to have something to refer to on occasion.
"To stop taxing business is an invitation for those who operate small businesses to evade and cheat on their taxes even more than they currently do. And they do. It is well known that the greatest intensity of tax cheating occurs among small business proprietors. Even without outright cheating the opportunities of shifting expenses which have a personal benefit to business expenses (e.g. auto purchase or rental) are endless and used. Eliminating business taxation would be just another invitation to the ball.For those of you who doubt Eli, ask anyone you know who operates a business, or is pretty high up in one, who owns or pays for the auto they drive. All of the one's that I know drive business owned autos.