Here is the abstract:
America is a country founded on ideas. The Enlightenment was one set of ideas that attended our birth and one Enlightenment belief as strong today as during the revolution is our faith in capitalism and the protection of private property. Yet, the United States tax system manages to violate fundamental capitalist principles as outlined in the extensive writings of Adam Smith – the father of capitalism. Comparing Smith’s vision to the current United States tax system reveals many important inconsistencies, particularly the current penchant for simultaneously taxing wages while exempting (or delaying) taxes on wealth and wealth appreciation. The article proposes more closely aligning the U.S. tax system with Smith’s capitalist vision by introducing a combined wealth and consumption tax each with significant exemption amounts. The expected result of a combined wealth and consumption tax system is the release of a considerable portion of the population from tax liability. Less expected rewards of a tax system that more closely resembles Smith’s capitalist ideal include: (a) support for a living wage; (b) class based affirmative action; and, (c) reparations for slavery.
–Francis Lipman
Unfortunately, the multitude of invisable hands at work need a clear eye (govt of the people, for the people, and by the people) that declares it’s interests. The laise-faire model of wealth seems to discount a very powerful hand, greed. If invisable control is to be embraced, both positive and negative aspects need to be acknowleged, addressed, and or mitigated. It would seem unlikely that those that bennefit highly from unacountable power could be trusted to put the needs of the many above the wishes of the few. Absolute power corrupts absolutely. Yes, the controls may need tweaking from time to time as does the application of the theory. Does the word EVOLUTION apply? If the system were allowed to work in purity, maybe no abuses would neccesatate oversight. Yeh, like that’s gonna happen!