Re: Local Currency Article

[Mbindnerdc@aol.com]

I would think that if such a tax were passed that the costs of payment would 
somehow be shifted to the consumer - as a banking customer, and employee or as 
a consumer of goods - perhaps all three.  At the end of the day, some 
individuals would have more, some less and most the same - but the net 
available would not alter in the aggregate.  

The way to predict who would support the tax reform you suggest would be to 
follow which industry or sector would benefit should it be enacted (and who 
would lose).  Count on one thing, if most businesses had significant costs they 
will likely simply reduce gross pay to the net pay level.  If they did not, 
look for the price level on certain goods to go up (so that individuals spend 
what they gain in increased income, which is the same effect experienced by 
replacing income taxes with consumption taxes).  

The enactment of the Tobin Tax itself would not improve the distribution of 
incomes (in fact, it might damage it as some rich individuals figure out how to 
evade the tax).  If you wish to increase home ownership for lower income 
individuals through the redistribution of incomes, then enact that provision.  
Personally, I favor increasing home ownership by giving tax advantages to 
employers for offering mortgages as an employee benefit (and an incentive for 
longevity).

MB

In a message dated 12/10/2002 1:17:09 PM Eastern Standard Time, 
PBottissr@aol.com writes:

>Norm:
>
>The average American's equity in there home far exceed any other capital 
>assests they have. If the tax systems were abolished and a single tax of less 
>than $100.00 per year were all they had to pay almost universal home 
>ownership would occur. Putting capital in the hands of almost everybody. Paul 
>Bottis  <A HREF="http://madashellclub.com/";>http://www.madashellclub.com</A>  
>
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