Comments on: L.T. Hobhouse – Taxation is Recognition of the Social Element in the Creation of Wealth http://betweentwocities.com/2008/06/26/taxation-is-recognition-of-the-social-element-in-the-creation-of-wealth/ "Two cities have been formed by two loves: the earthly by the lover of self, even to the contempt of God; the heavenly by the love of God, even to the contempt of self." St. Augustine, DE CIVITATE DEI, Book XIV, Chapter 28 Tue, 07 Feb 2012 15:41:24 +0000 hourly 1 http://wordpress.com/ By: ideordMuri http://betweentwocities.com/2008/06/26/taxation-is-recognition-of-the-social-element-in-the-creation-of-wealth/#comment-22 Sun, 03 Aug 2008 16:48:45 +0000 http://davidlarkin.wordpress.com/?p=5#comment-22 Tahnks for posting

]]> By: Neil Agron http://betweentwocities.com/2008/06/26/taxation-is-recognition-of-the-social-element-in-the-creation-of-wealth/#comment-8 Sun, 29 Jun 2008 23:31:30 +0000 http://davidlarkin.wordpress.com/?p=5#comment-8 This is a great treatise! His p.90 analogy is simple and concise. Of course, there is a social factor in the creation of wealth. Having just returned from the UK, it would appear that they recognize this to some extent. I guess you and “W” took different courses. Keep doing what you’re doing.

]]> By: davidlarkin http://betweentwocities.com/2008/06/26/taxation-is-recognition-of-the-social-element-in-the-creation-of-wealth/#comment-4 Fri, 27 Jun 2008 15:17:15 +0000 http://davidlarkin.wordpress.com/?p=5#comment-4 As a former tax professional, I think of one thing wrong with the thinking is that what is withheld from your paycheck may not actually correspond to your tax liability such that if what is withheld is greater than your liability to the government, then you are giving the government a tax free loan of your money which you get back as a refund the following year without interest.

You could negotiate for the net pay, and people sometimes do in their mind when deciding whether to take the job, but you have to pretend that you are actually getting the gross when negotiating the wages, because the employer’s accounting shows it as paid to you in gross, with deduction made after it pays you, to be sent to the government, to the insurance company, into your 401K etc.

I suppose psychologically, and as a matter of reality with the adjustment for over withholding, what you propose works.

]]> By: Jim Conroy http://betweentwocities.com/2008/06/26/taxation-is-recognition-of-the-social-element-in-the-creation-of-wealth/#comment-3 Fri, 27 Jun 2008 14:38:20 +0000 http://davidlarkin.wordpress.com/?p=5#comment-3 David, the material you posted seems intuitively obvious to me – but certainly, and strangely, not to many of our “supply-side” and libertarian friends. I wonder if you ever had the thought I had on my first job in 1970. The company paid me $10,000 a year, and I was surprised to find that only about 70% of that amount showed up in my paycheck. Then it hit me – companies pay for a standard of living – whatever would enable me at that age to get my own place and buy food and transportation. Without taxes, the company would simply have paid me $7,000. So, I naively thought at age 21, it’s all a game of funny money. Doesn’t matter a bit. Transfers among individual, corporate, state, and federal entities – with my wages inflated to compensate. All so that I can shop for a job that I qualify for, and will support the best standard of living within my qualification-space.

What was wrong with that thinking?

JWC

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