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Much of this is because of information distortion - when the state directly collects an LVT from homeowners or a VAT from consumers, every individual citizen is aware of that tax and feels the pain of it. When they collect a tax from corporations, only the corporation feels it as a tax, and they raise their prices to compensate for losses from it, and the consumer instead sees it as simply the price of goods. The consumer has no information for what things would have cost without the tax, so they simply accept it as how things are. Meanwhile, the beneficial effects of an LVT or VAT all appear in reduced opportunity costs (the price of housing comes down, the prices of consumer goods more truly reflect supply & demand), so they're completely unaware of them.

It makes me wonder, now that cryptocurrency is a thing, if fiscal policy could be embedded directly in the monetary system. Rather than a separate tax that's charged and remitted to the treasury, it'd simply be the difference between what a consumer spends and what a producer receives, much like how transaction fees come straight out of the transaction.



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