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Friday, September 20, 2019

Reply from Yang for UBI from VATs

https://youtu.be/zAc2oZLhcto

Most "developed" countries are guided by a military industrial complex owners to manipulate the demand and supply. any tax creates dead weight loss. The more tax types, the more the dead weight loss types and more statistical significance of not being able to find the true reason why someone choosing (or not choosing) something (to purchase or save) per their utility basket. Additionally, the more tax types or dead weight loss types, it just seems that it can create a fog-of-war where households, firms, and goverment will have a harder time finding each other's utility pattern, thus creating more problems then solving.
The thing with Yang's UBI from VAT plan is that it is another tax layer that increases the complication of taxes and therefore reduces the likelyhood of households and firms from interpreting the best plan for their objectives. It may be better to have a national sales tax or just raise income tax to raise the funds.
We economists measure things differently. Yes money is used as a measurement, but utility is best to measure per individual (person, not corporation.) What one does with the money is always at risk of regulation, the real question is who's regulation; a VAT will add one more question to 1099 income source earners and firms that must ask when that VAT regulation would apply and it is my guess that there might be a minimum threshold to apply the tax at a practical level.
By the way, the reason a national sales tax or VAT has a harder time in working is because of the nature of the IRS investigating more firms or people that need to pay it.

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