The real issue

Reader comment on: Tax Notes's Tax Hypocrisy

Submitted by Michael Trachtenberg (United States), Apr 12, 2010 17:45

Taxes are how government funds it operations. Many government operations are vital roads, police function, maintaining quality of goods, etc. The issue behind what taxes should is what services government should cost. Somehow this subject, what government should do and how it should pay for it has gotten lost in a discussion over tax journalism.

I disagree with Mr. Johnston that markets set prices. Sometimes sellers set prices. Markets set equilibria. A seller may set a price above the market price yet receive enough income to stay in business. Is this seller selling at the optimal price? Until there is competition or some impulse to change price and see if sales increase or decrease, we do not know if the price of the transaction is the true equilibrium and therfore market price.

Is Tax Advisors too expensive? Reasonable minds can differ on this. Is Tax Advisors effective as one of many watch dogs on the tax system? Yes but this does not prevent other organizations from being effective. Future of Capitalism is also an effective watchdog. Does a discussion like this between two valuable and informed voices advance the cause of keeping the tax system in line? I do not think so because time that could be spent investigating something substantive is wasted on costs associated with starting a not-for-profit.

Stay on topic please.

Michael Trachtenberg

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Other reader comments on this item

Title By Date
This is exactly right about Tax Notes Today [59 words]Gary B.Sep 19, 2010 15:09
Game, set, match [63 words]Rich HandApr 12, 2010 17:54
⇒ The real issue [226 words]Michael TrachtenbergApr 12, 2010 17:45
[w/response] [647 words]
David Cay JohnstonApr 12, 2010 12:23
barriers to market entry
[w/response] [427 words]
David Cay JohnstonApr 12, 2010 13:07
Johnston reponds
[w/response] [1382 words]
David Cay JohnstonApr 12, 2010 10:56

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