Friday

 

Long-Run Effects of Raising and Lowering Overall Tax Rate

Do we want both: all individuals to be much richer and government to receive much more tax revenue?

Then we must substantially lower tax rates.

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Table 1 model compares GDP and tax revenues change over 200 years when:

-overall tax rate, taxes/GDP, is raised from 30% to 40% - Democrats-preferred

-overall tax rate, taxes/GDP, is lowered from 30% to 20% - Republicans-preferred

…

At year 200

Republicans-preferred 20% overall tax rate

compared to

Democrats-preferred 40% overall tax rate

has resulted in:

GDP 49 times larger

Yearly tax revenue 24 times larger

Total all years tax revenue 13 times larger

…

Tax revenue surpluses to be mainly used for:

Citizens’ Shareholder Dividend, making everyone a millionaire from birth.

Development of technologies to enable the spread of tHAT through the universe.

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All of tHAT is logical, intuitive, and common sense, but we must always keep in mind:

-people are mainly concerned about the current short-run not the future long-run

-politicians know future voters can’t vote for current politicians

-many people are worried with more rapid economic growth inequality of incomes will increase, e.g. most peoples’ income and wealth grow 10% per year but rich peoples’ grow 20%, they prefer no difference or the reverse

-many people prefer economic degrowth, reasons include to fight climate change

…

Economic degrowth philosophy

ChatGPT:

Economic degrowth is a philosophical and socio-economic concept that argues for the intentional downsizing of economies to achieve sustainable development and address environmental challenges.

This philosophy critiques the conventional growth paradigm, which equates economic growth with progress and well-being, and posits infinite growth is unsustainable on a finite planet.

Key principles of economic degrowth philosophy:

· Sustainability

Emphasizes the need to reduce ecological footprints and live within the Earth's carrying capacity.

This involves minimizing resource consumption, reducing waste, and promoting renewable energy sources.

· Equity and social justice

Advocates for a more equitable distribution of wealth and resources.

This includes addressing inequalities and ensuring all individuals have access to basic needs and a good quality of life.

· Well-being over consumption

Shifts focus from material wealth and consumerism to well-being and quality of life.

This includes promoting community, health, education, and meaningful work over the accumulation of goods.

· Environmental protection

Economic growth often leads to environmental degradation.

Degrowth advocates argue reducing economic activity can decrease pollution and CO2 emissions, conserve resources, and mitigate climate change.

· Finite resources

The planet has limited resources, and continuous economic growth is not feasible in the long run.

Degrowth promotes a steady-state economy that operates within these limits.

· Quality of life

High levels of consumption do not necessarily lead to greater happiness or well-being.

Degrowth suggests a simpler lifestyle focused on relationships, community, and health can be more fulfilling.

· Reducing inequality

Economic growth can exacerbate social inequalities.

Degrowth emphasizes redistributing wealth and ensuring everyone's basic needs are met.

(end CGPT)

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Arguments for rapid economic growth include it results in faster:

· movement of people out of poverty into prosperity, everyone becomes wealthy and free of government-dependency

· development of medical sciences with resulting improved quality of life and longer life

· development of efficient use of and recycling of resources technologies

· development of electric energy production technologies

· development of environment improving technologies