I suppose taxes must once have been very simple, but long ago they became many and varied. Each country has its own system. Not only are the tax rates different, but so are detailed tax rules, like the definition of taxable income, the commodities that are actually taxed, and the way in which taxes are collected. I dare say that no actual tax system was designed by someone as the best of all possible tax systems. But at least their elements have been put together deliberately and thoughtfully. It is a challenging and interesting task to see if one can lay down some principles for good taxes, to try to deduce what should be taxed more heavily, and what less heavily; and even how high taxes should be. Economists, at least some economists, have struggled with these problems since the beginning, of economic science. I want to talk about some of what they have found. and about some ideas of my own. I shall be talking about a lot of different taxes. That implies that I do believe tax systems should be complicated, not
simple. But some have argued, often passionately, that a particular simple system is right, and I want to talk about these ideas too. |