How do we get at the heart of an issue? We can commission an expert to explain what the situation is and suggest a solution. How does that work out? No expert can make a profit by offering a simple solution to a complex issue.
A better method is to break an issue down to its most basic ingredients and find a root cause that makes an expensive sophisticated analysis unnecessary. That is where the fantasy free school of economics comes in.
That is exactly what I do. There is nothing to it but there is one caveat. To do this, one must be in touch with reality. The result is, possessing the Fantasy Free Advantage. .
Lets look at the purpose of taxes in the United States. The purpose of taxes is to raise revenue for the government, right? Is that what the U.S. tax code does and nothing else? Collecting revenue is only a small part of what the tax code is used for, The main purpose of tax legislation is to permit whatever entity that controls government to engineer society in keeping with their best interests.
Taxes are used to change human behavior according to what those in power think good behavior should be, Cigarettes are heavily taxed. I am not endorsing cigarettes.
Taxes are cut as a means of economic stimulus. Corporate taxes are raised and lowered for all kinds of reasons, none of which serve as a means of collecting revenue. A complex tax code makes for certain that the average citizen has no idea what government costs him personally. Spending goes up and personal tax rates remain the same. So, who cares what government spends? Revenue sharing reduces state’s rights. In general – taxes are used more to engineer society than they are used to generate revenue.
Here is the simple solution. Make sure taxes go up when spending increases and go down when spending decreases. That would put an end to out of control government spending. Government spending would plummet.
But, what about social engineering? How has that been going so far? What about stimulus? Stimulus has gotten the United States in the bad economic situation it is in.
Perhaps folks would rather not know what government costs them.