"jbennet, I disagree with you. Using taxation to "direct" the market to what is "conceived" to be beneficial (who decides, how do they know?), interferes with free market forces"
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Zeev.....
Targeted taxation to influence taxpayer behaviour is always a bad idea, in my opinion. The very basis of such a notion is the liberal thesis that the government (political elite) always knows what goals are "good" and what behavior best advances the nation toward those goals. History refutes such a theory as ludicrous, and it takes only a brief study of the clowns that populate the three branches of our government (not to mention the incompetent bureaucracy) to totally dismiss any high view of government as invalid. Unintended consequenses of their promulgations are rarely considered, and when they are encountered in real life, a blizzard of conflicting and ill-considered rules and "interpretations" invariably result.
Who is to say that long term investments are inherently more efficient or beneficial to society than short term investments? I remember all the arguments from studying Econ, but in the real world those arguments fall apart, in my opinion. I have long advocated a flat tax on everything and everyone - no loopholes, no exemptions. Aside from a catastrophic initial effect on the government bureaucracy, the accounting and legal professions, and those living off of the largesse of the current system (remember the recent Farm Bill), I see little downside and a lot of upside to such a move to replace our incredibly incomprehensible tax codes.
Just my opinion, though.
mlsoft
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