Sunday, December 6, 2020

Consider city sales taxes

 For whatever reason, they are what we do mostly for cities. We change city sales taxes often and they vary across the economy. The Swamp only wants a small part of that, it is to no ones advantage if the Swamp dominates with a wide scale VAT, nor is it to anyone's advantage to apply an economy wide minimum wage.

So that sets the VAT tax applicable on the banks, and given the supply chain skew, the number is about a half point or less.  We do not want the fiaters repressing the local fiat transactions. The cities are dealing with a 5% variation in tax income. A half point Fed tax means they get ten coin tosses per Fed tax cycle over which they cover he 5% variation. It is the same spectral matching problem. We set the fiat monopoly fee every 15 years, then the cities can freely vary their sales taxes every year and a half.

Spectral matching. We are adjusting the alias modes, the deviations. Making sure every component equally sees the disequilibriums.

If this were a political party we would be Markovians and our philosophy is 'live with your disabilities'. Instead of Hayekians we would be Coasian anarchists. Our economic philosophy? Find the Constitutional foul ups and pay the price.

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