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Posted by warren mosler (72.161.109.198) on 17:05:06 11/20/07
In Reply to: Re: So Inflation Happens When? posted by James Baird
and about all that's needed to get started on the right foot is a simple property tax
Also, you can't 'count' income taxes paid by govt workers- they are just getting a net payment- the 'tax' doesn't 'drive the model'
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: : think of it this way to get started:
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: : govt spending is inflationary
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: : taxing is deflationary
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: : deficit spending is net inflationary (all else equal which it usually isn't) if the deficit exceeds non govt 'savings desires.'
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: And when people look at the problems thrid world governments have with inflation, they usually pin the blame deficit spending, when it actually is due to their inability to efficiently collect taxes. An efficient tax system is the backbone of any stable currency - but try to convince the libertarians of that!
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