This podcast is the sequel to Greenbacks, where we discussed why we have taxes, the different types of taxes, and the pros and cons of each type. In this podcast, we delve into the evolution of the tax system and look at the debates surrounding the level of tax rates, specifically some of the false choices presented in political discussions. And we delve deeply into one of the most famous “tax revolts” in U.S. history, California’s Proposition 13.
Proposition 13 demonstrates what happens when a community fails to analyze the “portfolio” of taxes and also fails to foresee the secondary and tertiary effects of such a dramatic change in tax policy.
The podcast ends with a brief discussion examining whether it’s true that California is a “high tax” state.
Key Terms Used
Boiling Frog, Conservatism, Corporate Personhood, Direct Democracy, Externality, Friction (economic), Libertarianism, Natural Monopoly, Progressive Tax, Public Good, Structural Unemployment, Velocity