Assume MMT. Tax is to reduce inflation.

Taxing incomes reduces inflation. Taxing companies doesn’t – all corporate income is of course income to someone at some point.

Therefore MMT says abolish corporation tax.

5 thoughts on “A thought”

  1. Bloke in North Dorset

    I’m on Exmoor and I can hear a strange spluttering and banging, it appears to be be coming from the direction of the East coast, around Ely.

  2. Abolishing Corp Tax works in all sorts of ways in any case, doesn’t it? There isn’t any need to suppose that pixies and elves exist in order to support it?

    As long as you have some sort of low level witholding tax on dividends, just so all the foreigners and Tim’s don’t make out like bandits (at the expense of the locals)?

  3. It strikes me that Ritchie’s MMT and Tim’s “eat what and as much as you like so long as you exercise it off” are fundamentally the same argument. Perhaps one day you’ll even become friends?!

  4. It strikes me that Ritchie’s MMT and Tim’s “eat what and as much as you like so long as you exercise it off” are fundamentally the same argument.

    You’re not paying attention.

    Ritchie’s argument boils down to ‘eat what and as much as you like and have someone else exercise it off’. It doesn’t work that way.

  5. @Dennis – Agree with the analogy 🙂

    I see in Spud’s latest blathering that he thinks you can have universal benefits in an MMT system by virtue of – and I paraphrase – it all sort of coming out in the wash as stimulated supply meets latent demand. Do you think the Great Tuber has just invented the invisible hand?

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