Towards a Better Tax System

What is an ideal tax system? Perhaps one that lies in the background, raising revenue fairly in a way that cannot be avoided, that discourages no behaviour except undesirable behaviour, avoids unsustainable booms whilst stimulating productive activity. Such a tax system can be designed. The sort of things that could be taxed include:

  • Rents 
    • Land 
    • Oil (road duty) 
    • Radio spectrum 
    • Natural Monopolies
  • Bads 
    • Existing Ones (Alcohol, Tobacco) 
    • Any additional legalised drugs 
    • Sugar 
    • Congestion (road duty + refund) 
    • Carbon
  • Debt & Catastrophic Risk
    • Government Debt and Money
    • Risk 
    • Shadow banks, Pseudo-money and Bank Balance Sheets 
    • State lending 
    • Infrastructure development