Taxes: Who Benefits And Who Pays?

Most of us don't like to pay taxes. But that's how we pool our resources to do things for our community, county, state and nation that wouldn't be done by individuals. The "magic of the marketplace" won't educate all of our children, build roads and bridges, eradicate diseases such as yellow fever and smallpox, build the foundations of a national economy, operate police and fire departments or defend the nation.

So how to devise a fair, effective, efficient and sensible system of taxes?

Yesterday National Public Radio's web site published a summary of a panel discussion on last Tuesday's Planet Money radio show. The title: "Six Policies Economists Love (And Politicians Hate)."

The proposed policies:
1. Eliminate mortgage interest deduction;
2. End deduction companies get for employee health care;
3. Eliminate corporate income tax;
4. Eliminate all income and payroll taxes, replace with consumption tax;
5. Tax carbon emissions;
6. Legalize marijuana.

There you have it. The summary provides some rationale. The piece is worth reading. I'm not convinced, but it can't hurt to reexamine how we do things.