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Date: | Wed May 31 09:48:09 2006 |
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Dear James:
I agree fully with your assessment of the Georgists'
motivations. I said pretty much the same thing in my
initial post.
But I don't see the point in responding directly to
the question about what kind of tax would be best. I
have already given the broad answer that the best kind
of tax is one that taxes consumer surplus. But to
respond in the way that I think you want, I would have
to say something about sales taxes, income taxes, or
the like. All taxes, including these, affect
entrepreneurship, as I have said -- and as everyone
but the Georgists seem to know. But the issue in the
discussion is not about this. The issue, in its
initial form or in Larry's disguise, is about whether
the land value tax or land rental tax affects
entrepreneurship.
There is another related issue that I have been
avoiding, however. It is the claim implicit in Larry's
post relating to taxing on the basis of elasticities
of supply. To deal with this would take me very deeply
into Davenport's competitive entrepreneurship approach
to price and value, which differs categorically from
the Marshallian approach that we all have imprinted on
our brains. It is enough at the moment to present
Davenport's criticism of George. But perhaps you have
not been paying close attention to this.
Best wishes,
Pat Gunning
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