Sen. Coburn: Worst Tax Comes From Government Printing Money
It's a tax, certainly, but I'm not clear on why it's supposed to be the worst one. It's hidden, but no more hidden than what your employer pays in payroll taxes (which ultimately makes itself felt to you in the form of people not being hired). It's 100% efficient and cheap to collect, which is I guess arguably bad because taxes are bad, but desirable if we must have them.
The only problem I really see with inflation as a tax is that it's under the control of people who aren't particularly accountable. But that's not an inherent flaw of inflation, it's a political problem.
2 comments:
I don't understand the Republican recent fear of inflation. Currently, inflation rates are rather low by historic standards. While they have ticked up in the past month or so, they still are no where near levels that should be causing concern.
Moreover, there is reason to believe that the current economic malaise is caused by too many people (and governments) being over leveraged and too many corporations sitting on cash rather than making capital investments, two problems that would likely be solved, or at least mitigated by a higher inflation rate.
It's the worst one because it has the most distorting effects. Read this: http://mises.org/journals/rae/pdf/RAE7_1_1.pdf
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