Category Archives: Taxes

More Effective Remedies for Inequality

Yves here. The subject of inequality in income and wealth has, in the last year or so, become an oft-mentioned topic in economic and political commentary. It’s now even acceptable to use the word “oligarchy” to describe the US. Yet too often lost in the debate is that this type of inequality is the result of what right society allows various members to have. For instance, in the last 30 years, intellectual property laws have gotten stronger while the rights of workers to organize have been cut back.

We had a more equitable society when unions were stronger, taxes were more progressive, and anti-trust laws were enforced. This post by Geoff Davis serves as a reminder that there are remedies other than progressive taxation (which he regards as an after-the-fact remedy) to achieve that end.

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As Predicted, IRS Deems Bitcoin to be Property, Limiting Its Usefulness in Commercial Transactions

We told readers earlier this month that the IRS was well-nigh certain to deem Bitcoin to be property, not a currency, and that would deter its use in commerce. We got pushback from Bitcoin defenders, who tried several lines of argument, basically along the lines of “digital currencies are inevitable” and “the tax authorities are irrelevant”. Today, the IRS issued a release that states that it regards Bitcoin as tradeable property, which will make it cumbersome to use it in commercial transactions.

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Tax Havens Make US and Europe Look Poorer than They Are, Exaggerate Size of “Global Imbalances”

Peculiarly, despite the importance of tax havens, a pathbreaking paper published in 2013 by Gabriel Zucman of the Paris School of Economics, The Missing Wealth of Nations: Are Europe and the U.S. Net Debtors or Net Creditors? (hat tip Dikaios Logos) has received perilous little attention. Perhaps that’s because, among other things, it undercuts the Bernanke-flattering claim that “global imbalances” were a major driver of the financial crisis.

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