by Max Barry

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Visit a region where you can gain the benefit of a small group of like minded players, but with no other restrictions, where your rights end at the tip of the other guy's nose and where smaller government is better government, and no government may be best of all.

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i am sure wealth taxes have been used awfully, but the example i can think of is hong kong, with zero income tax, and only a 7.5% tax on property when it is sold, 15% for foreigners.
they appear to be going ok.

The Council of FJK Rants wrote:hong kong, with zero income tax, and only a 7.5% tax on property when it is sold, 15% for foreigners.
they appear to be going ok.

That sounds pretty reasonable, at least when compared to the US's current system! Involuntary taxes are inherently immoral, but if gov'ments gonna tax (and you know they will), at least they can keep them low and uncomplicated.

The Council of FJK Rants wrote:i am sure wealth taxes have been used awfully, but the example i can think of is hong kong, with zero income tax, and only a 7.5% tax on property when it is sold, 15% for foreigners.
they appear to be going ok.

That is more like a sales tax or a Capital Gains Tax than a Wealth Tax - a Wealth Tax hits the owners of properties (or anything) whether they have much ready cash or not - it is basically a way of making families sell their business enterprises (to get the money to pay the wealth tax) it would, for example, hit family farms hard.

I do not know who told you that Hong Kong does not have an income tax - it does have one. The system of taxation you seem to be describing is close to that the island of Sark used to have - a tax on inheritance and the sale of property, and nothing else.

The key thing about Hong Kong (thanks to Financial Secretary Cowperthwait back in the 1950s and 1960s) is that its government SPENDING is very low and its REGULATION is limited. Just changing the taxation system in the United States, whilst leaving the wild level of government spending and insane level of regulation in place, would achieve little.

However, moving Federal taxation from income and profits to SALES (not property - SALES) would mean that imports were taxed the same as domestic producers - which would shoot the fox of Mr Trump.

Taxing property is fine (ish) if only property owners have the vote - but that has not been true in Western countries for a long time. Hong Kong does not have universal voting.

One advantage of a Sales Tax is that all voters (and all immigrants - including illegal ones) pay it.

How can Texas afford illegals more than California can? Because Texas relies on the Sales Tax - California relies more on taxing incomes, especially high incomes, and Capital Gains. Illegals do not tend to pay the taxes that California relies upon.

So got a rant to spread.
1/ it seems that polling no longer works. It seems to me that after the Arab Spring, there is a major rejection of the status quo that does not seem to be picked up by polling.
2/ just sussed out obama care. looking at it, seems that categories need to be introduced. so =unhealthy should have a category which is higher premium for awful health. also, %age of cost be allowed, like car insurance. so 40%, 60% 80% 100% of payout. libertarian issue is compulsion of insurance.
3/ once this is done, removal of lawyers from decision making of health insurance decisions. this would automatically mean approx 3% GDP increase.
could go on. but hey, why bother, you wont agree.

American Tort Law is a mess FJK - and not just in health care, in everything. The basic problem is negligence does not have to be proved - basically "something bad has happened to me - someone with Deep Pockets must pay me money", that is a circus rather than a legal system. However, the main problems leading to the increase of health costs in the United States (over decades) are the government subsidy schemes (here David Ricardo, two centuries ago, could work out how subsidies inflate costs) and the endlessly increasing regulations. Sadly I do not see President Donald Trump as someone who is going to roll back either the endlessly increasing government subsidies, or the endlessly increasing regulations.

And while we are looking at President Elect Donald J. Trump - he is (as predicted) talking about yet more government "infrastructure" spending. Just like Mrs Clinton was promising - and just like Barack Obama in 2009. "Meet the New Boss - same as the Old Boss".

Still at least the vote rigging boasted of by members of the Clinton Campaign (not aware they were being filmed by the hidden cameras of Project Veritas) has been defeated in the Presidential election - let us hope that the Democrat vote rigging is defeated in the North Carolina Governor election also.

What is wrong with the media? The Democrats boast of vote rigging - and the media ignore the story. And the Democrats (again we know this because of leaked e.mails and hidden camera conversations) boast of organising violent incidents at Trump campaign events, and organising the riots now (the busses of Mr George Soros and so on) - and the media ignore this story also. No wonder many Americans just assume that the "mainstream media" (like the education system) is just an extension of the Progressive movement and the Democratic Party.

The Credit Bubble economy carries on. Mr Trump will do nothing to fix it - and will (most likely) react to the collapse of the Credit Bubble with an orgy of government spending and regulations - just as Mrs Clinton would have. Oh well at least the Supreme Court appointments will (hopefully) not be of the fanatical haters of the United States Constitution that Mrs Clinton would have appointed.

OK looks like commodities are rising. inflation is starting to appear.

Paul Marks

The Council of FJK Rants wrote:OK looks like commodities are rising. inflation is starting to appear.

It may well be so - but who knows when the bubble will burst.

probably when interest rates hit 5%

Paul Marks

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