Very stupid column courtesy of John Tamny at Forbes a few weeks ago lauding Eduardo Saverin (of Facebook fame) for renouncing his US citizenship so he won't have to pay capital gains taxes, or "feed the beast" according to this prick author.
Tamny says Saverin is an American hero. He thinks US spending is wasteful, and that it would be so much better if Savern could just keep all his money and invest it in a bigger job-creation machine. This is the same libertarian, "free market" nonsense that's failed time and time again. Maybe the abolition of capital gains taxes would increase entrepreneurial investment, but it wouldn't be invested in sectors that are necessary to social welfare, e.g. education, healthcare, and defense. Instead, we'd perfect the iPod and have holographic TVs, maybe even develop some new medical equipment (most investment has been in the technology sector lately), but everyone would be too poor to use it except the investors.
Then he says we should switch to a consumption tax.
Well, I've talked about this before. Here's the graph I made:
Consumption taxes aren't fair. They don't even make economic sense. Get it?
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