John Christensen of the Tax Justice Network has just drawn my attention to this extraordinary article:
The article is extraordinary for four reasons. The first is when it was written: 1946. It was way out of its time.
The second is who wrote it: Beardsley Ruml was chair of the New York Fed.
Third, it was extraordinary for what it said on the nature of taxation (see below).
And last, although I will not deal with it, it’s extraordinary for arguing corporate taxation was not needed for reasons now wholly outmoded.
The major point of which is that in an MMT world the corporate profits tax is a really, really, bad idea.
Which is, of course, why Ritchie doesn’t want to deal with that part of the argument.
And yes, the argument is the same one I’ve been using all along: the incidence of corporation tax.