Each day, I go for a walk for about an hour. While walking, I find podcasts (iTunes is great!) to be a wonderful way to spend the time thinking about ideas.
Russ Robert‘s podcast is one of my favorites. Roberts is so thoughtful and draws ideas from such a large pool. I am amazed. Roberts is also incredibly civil in his discussions. When he doesn’t agree with an idea, he will challenge it. And he does so thoughtfully, and it causes the guest to defend the premises.
In this podcase, Roberts talks to Don Boudreaux about “Public Choice”. Boudreaux is another favorite. Notice the complexities that they uncover while talking.
As for Boudreaux’s consumption tax argument to replace our current tax system, it is interesting to consider. I immediately thought how I would exploit a consumption tax system as an accountant (not my field).
Simply, why would a person own something of incredible value under this system? A company could buy an exotic automobile for an employee to use. The company would take a deduction from their income for the cost of the automobile (reducing the company’s income) and the beneficiary, the employee, is not purchasing something to consume that would be taxed. A company could do this for a home, vacations, boats, furnishings, and almost anything of value. A company would not offer an income for the individual. A company would offer a basket of perks.
I am not sure if this is a better system as I quickly thought about it. Perhaps, I am missing something.
Listen to the podcast here…
Need an introduction to the School of Public Choice theory?