Friday, January 20, 2006

Taxes "stink like microwaved diaper"

Cosh, over at Macleans, has posted a great discussion on consumption versus income taxes.

There's an uncounted deadweight loss from the forced maladjustment to my personal degree of time-preference. Consumption taxes don't just take money from us that can be given back at income-tax time; they create inefficiencies of allocation in your personal economy and mine, just as capital-gains taxes create inefficiencies in the big wide smoke-belching economy. The message is that taxes--all of them--stink like microwaved diaper.

2 comments:

Jesse Gritter Online said...

"The message is that taxes--all of them--stink like microwaved diaper."

Not the most pleasant analogy, but true indeed.

Chanandler said...

consumption taxes versus Capital gains taxes? Thats like poop fighting vomit to see which one is worse. Come on now, all taxes are like a nuked diaper!

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