Fairness in taxation

The Economist Deals with it.

Perhaps fairness also requires that the tax code account for the higher cost of living in some areas. The income cut-off for tax increases floated by President Obama is $250,000. That sum buys you a lot more in Fargo than it does in Manhattan. Most high earners live in expensive areas. They command such high salaries, in part, to offset their high cost of living. So if by fairness we mean targeting a certain benefit from consumption, it seems federal taxes need to account for geographic disparities. University of Michigan economist David Albouy found that workers in high-cost cities pay up to 27% more in federal taxes than workers with similar skills in low tax cities. Is that fair?

The system is completely unfair, an abomination and a disgrace to economists like Delong, who suffers political delusion and support it Shannon theory gives us the optimum government structure. Government at one level handles voter transactions that cannot be handled minimally at another level of aggregation.

Problems arise, like the Marin County Brown Shirt mafia, who impose nationwide solutions that better fit regional solutions. This mafia, composed of Brown, Newsome, Pelosi, Boxer and Feinstein has no concept of government efficiency and economies of scale. They believe in the forces of anti-democracy, elites should rule because voters are imperfectly represented.

The pro-democracy solution is not to impose elitism and get elite economists to lie. The pro-democracy solution is to speak out about the mal-representation in the Senate. I am still waiting for the Marin County Mafia to address the issue, so far not a peep from my 1/5 of Senator Babs.