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	<title>Tax Policy @ OptimalPortfolio.net &#187; Failed Justifications</title>
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	<description>Replacing wealth taxes with a flat consumption tax and other political commentary...</description>
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		<title>Addictive Keynesian Economics</title>
		<link>http://OptimalPortfolio.net/TaxPolicy/2008/06/19/addictive-keynesian-economics/</link>
		<comments>http://OptimalPortfolio.net/TaxPolicy/2008/06/19/addictive-keynesian-economics/#comments</comments>
		<pubDate>Thu, 19 Jun 2008 17:48:21 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Failed Justifications]]></category>

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		<description><![CDATA[The Great Depression inspired people to rethink stock markets, macroeconomics, and the role of government.  In particular, John Maynard Keynes was inspired to write The General Theory of Employment, Interest and Money (published in 1936), striking at the heart of neoclassical economics theories based on equilibrium seeking free markets.  Keynes was concerned with [...]]]></description>
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		<title>Income Inelasticity Justification?</title>
		<link>http://OptimalPortfolio.net/TaxPolicy/2008/06/18/income-inelasticity-justification/</link>
		<comments>http://OptimalPortfolio.net/TaxPolicy/2008/06/18/income-inelasticity-justification/#comments</comments>
		<pubDate>Wed, 18 Jun 2008 17:39:12 +0000</pubDate>
		<dc:creator>admin</dc:creator>
				<category><![CDATA[Failed Justifications]]></category>

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		<description><![CDATA[The usual argument in favor of taxing income rather than consumption is that consumption is more elastic than earnings.  Although this is the predominant view (supported by studies like: Brookings Paper on Macroeconomics), there is evidence to the contrary.
In the Wikipedia article Wealth elasticity of demand, the author notes that consumption didn&#8217;t change substantially [...]]]></description>
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