Milton Friedman - Why Tax Reform Is Impossible

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tolmasky · 2013-05 · Strong recommendation

Somewhat relevant talk by Milton Friedman that I found enlightening when thinking about these tax matters (economics of tax shelters, tax cuts being the "product" politicians "sell", etc.): [VIDEO] (I strongly recommend watching all of it, but around 5:50 in he talks about why the tax system will remain complicated if you have an internet attention span).

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briandear · 2017-04 · Recommendation

Perhaps if taxes were less punitive and confiscatory people would be less likely to be creative in their avoidance. Lowering and simplifying taxes would increase revenues (per the Laffer Curve,) however that would result in politicians not being as powerful. Milton Friedman explains this brilliantly: [VIDEO]

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baddox · 2014-01 · Recommendation

There is a good Milton Friedman video wherein he explains why tax reform won't happen in the United States. The key is that the ideal goals of a tax system (e.g. generate lots of revenue with little inefficiency and little impact on taxpayers' personal financial situation and few unequally distributed loopholes like corporate tax avoidance) are not the goals of lawmakers who define the tax system. In the video, he focuses on a theoretical tax system just like our current progressive income tax, but with all brackets >25% limited to 25%, and argues that it would be an improvement (according to ideal goals). But I think the argument could be extended to basic income or negative income tax, the latter of which Friedman also advocated. [VIDEO]

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