No New Taxes – Or Old Ones, For That Matter
Megan McArdle briefly discusses abolishing taxes altogether and having the federal government pay its way merely by printing money and taking measures to control inflation. (How state and local governments would meet obligations is unspecified.)
It’s an intriguing idea beyond my amateur training in economics to rebut. My gut tells me this response from an anonymous comment is right, though:
The government is diverting real resources, so the cost will have to show up somewhere. Also, the dollar would be hit with another devaluation due to the fact that part of its value comes from its ability to cover tax obligations. If the government never actually bills anyone for taxes, dollars are less valuable.
Image via Blue Collar Republican via Google Images.