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fandomhigh2011-02-10 02:49 pm
glasses-justice.livejournal.com) wrote in fandomhigh2011-02-10 02:49 pm
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Nation Building and the Origin of Government, Period 5, Class 6, Thursday, 2-10
Alex wasn't late. She was on time. But it felt as though she was late, because she prided herself on being punctual.
Blame the bizarre monkey-creature who had been humping her leg at the Perk.
"So," she began, briskly, as she walked into the room. "Last week, we picked a currency. This week, we're going to talk about taxes. You can decide to not have any taxes, but then the government will be broke, and a government without any money is a government that can't fund itself and therefore can't do anything. So if you're going the no-tax route, either explain why you've chosen to dissolve the government, or how you intend to pay for anything your government intends to do."
She pulled her coat off as she talked, switching the cup she was holding from one hand to the other so she didn't spill it while she slipped her arms out. Once her coat was off, it was going to be tossed haphazardly on the seat behind her desk.
"There are a number of ways to assign taxes," she continued. "Income is a popular option. You tax a percentage of what everyone makes this year. A few difficulties: number one, people will hide income from you by being paid 'under the table.' Number two, this leads to inequity. Someone who inherits several million from their parents, and therefore doesn't need to work, also won't pay any taxes, as they have no income. Should inheritances be considered income? There are difficulties with that, as well."
Alex was now leaning against the front of her desk, and dunking a bag of tea into her cup. Other people drank coffee, when they were in a rush; other people weren't Alex.
"We can also tax purchases," she continued. "Assign, for example, six percent on top of the price of anything, and that money goes to the state. Of course, that means we're getting the same six percent from a gallon of milk as we are a deluxe yacht. Do we want to exempt necessities, like food? Clothing? Do we want to increase the tax on luxury items? If so, how do we determine what is a luxury, and what isn't? Do we also want to institute 'sin' taxes, on items we'd like to discourage the purchase of? Alcohol, or cigarettes, for example?
"We can assign taxes based on properties, as well, although that may disincline people to purchase property, and that's generally something the government likes to encourage. In that case, we can introduce exemptions directly into the code itself. For example, the United States tax code is an income tax base, but you can claim deductions if you have dependent children, or if you've given to charity, or even on the payment of a mortgage."
Alex sipped her tea -- a little too hot, and the flavor hadn't fully dispersed yet, but it still was much nicer than having no tea at all, this morning. "It's far more complicated than that," she said, "as well it should be, if we'd like for a system to be fair. And fairness will get the greatest compliance out of people. Although non-compliance will be another thorn in our side, so we'll need a department to sort out taxes and enforce their payment -- yet another department to fund, which is why we need taxes in the first place. So. Let's discuss taxes."
Blame the bizarre monkey-creature who had been humping her leg at the Perk.
"So," she began, briskly, as she walked into the room. "Last week, we picked a currency. This week, we're going to talk about taxes. You can decide to not have any taxes, but then the government will be broke, and a government without any money is a government that can't fund itself and therefore can't do anything. So if you're going the no-tax route, either explain why you've chosen to dissolve the government, or how you intend to pay for anything your government intends to do."
She pulled her coat off as she talked, switching the cup she was holding from one hand to the other so she didn't spill it while she slipped her arms out. Once her coat was off, it was going to be tossed haphazardly on the seat behind her desk.
"There are a number of ways to assign taxes," she continued. "Income is a popular option. You tax a percentage of what everyone makes this year. A few difficulties: number one, people will hide income from you by being paid 'under the table.' Number two, this leads to inequity. Someone who inherits several million from their parents, and therefore doesn't need to work, also won't pay any taxes, as they have no income. Should inheritances be considered income? There are difficulties with that, as well."
Alex was now leaning against the front of her desk, and dunking a bag of tea into her cup. Other people drank coffee, when they were in a rush; other people weren't Alex.
"We can also tax purchases," she continued. "Assign, for example, six percent on top of the price of anything, and that money goes to the state. Of course, that means we're getting the same six percent from a gallon of milk as we are a deluxe yacht. Do we want to exempt necessities, like food? Clothing? Do we want to increase the tax on luxury items? If so, how do we determine what is a luxury, and what isn't? Do we also want to institute 'sin' taxes, on items we'd like to discourage the purchase of? Alcohol, or cigarettes, for example?
"We can assign taxes based on properties, as well, although that may disincline people to purchase property, and that's generally something the government likes to encourage. In that case, we can introduce exemptions directly into the code itself. For example, the United States tax code is an income tax base, but you can claim deductions if you have dependent children, or if you've given to charity, or even on the payment of a mortgage."
Alex sipped her tea -- a little too hot, and the flavor hadn't fully dispersed yet, but it still was much nicer than having no tea at all, this morning. "It's far more complicated than that," she said, "as well it should be, if we'd like for a system to be fair. And fairness will get the greatest compliance out of people. Although non-compliance will be another thorn in our side, so we'll need a department to sort out taxes and enforce their payment -- yet another department to fund, which is why we need taxes in the first place. So. Let's discuss taxes."
Re: Discussion - How We Tax - NAT06
Re: Discussion - How We Tax - NAT06
Re: Discussion - How We Tax - NAT06