The politics of taxation

Matt Cowgill has a post up on the idea that tax policy can be depoliticised. I think it’s bang on the money. Tax policy is in essence redistribution, within and between parts of a society. It’s hard to think of anything that’s more contested than the idea of how resources should be distributed. While there may be some pareto gains, where we could all win without anyone being worse off, they’re few and far between. Virtually every other tax change involves winners and losers; which is where the politics comes in.

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