Warren Mosler’s modern monetary theory correctly argues that taxation isn’t necessary to provide a fund from which the national government may spend. It’s to curb inflation.
He mentioned in the following tweet that he has “long proposed replacing all taxes with a federal real estate tax”.
Maybe Warren also sees that the underlying generators of inflation aren’t simply excessive government spending, but land prices themselves–as land has no cost of production–together with the deadweight losses from taxing labour and capital. In favouring the taxing of land values, I suggest he provides more than an inkling to this effect.
What if the whole land rent were to be taxed away each year–if taxes were to be abolished it would tend to grow with prosperity and real wealth creation–wouldn’t that therefore cause land prices and inflation to fall towards zero – along with interest? (Have we shocked everyone to the core at this point?)
Would not that program make it possible for the national government to deliver a very good universal income to abolish poverty and free people from deadend jobs? Wouldn’t that render a job guarantee unnecessary?
Warren Mosler is an unusual man; successful and honest, yet clearly with the wellbeing of the community at heart.
Maybe I should ask him?