Thursday, October 21, 2004

Landsburg Sez; Kerry Is So Wacky On Taxes

Which some other Econ Phds can't seem to understand, given their crude prejudices: the effect that the measure of fairness in a tax cut is the the percentage change in an individual's tax liability. So if your tax is cut from $100 to $50, and Bill Gates' is cut from ten million to seven million, you have been the beneficiary of an injustice done to Bill Gates.

Why does he do this? Maybe because he's a dick? I don't know.

I venture the "dick" is closer to home, Max. Steve Landsburg is being a professional economist when he compares income taxes to incomes, and sees that if Bill Gates is paying $7 million in taxes on an income that is less than 140,000 times (and it most certainly is less than that) the income of the person paying only $50--and Gates is not receiving 140,000 times the benefits from government--then: Yes, that's unfair under many definitions of the term.

Not that it takes a Phd in economics to see it.

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