Free Market Forever

April 17, 2006

Wealth Tax And Kids' Tax

Filed under: Proper Alignment — admin @ 10:33 am

This provide a market distortion because it provides incentives to make kids, an act that is not justified by productivity. However, the most productive thing unproductive people can do is stop making kids. We need to ensure that it’s also their most profitable action.

How much the kids’ tax should be? Simple. We let the market decides that. Citizenship is like a stock. Everyone starts off with one right to make kids. That’s because after his death, he can always inherit his citizenship to his kids.

Now, the rich values the right to make one additional kid more than the poor. The rich are willing to pay more money, for each additional right to make 1 more kid. When 2 people value the same thing differently, they trade. If I am willing to pay $1 million to be able to make one more kid, and my poor neighbor is only willing to pay $500, then my poor neighbor and I will be both better off if he sell his right to make kids to me for $.5 million.

Under these circumstances, the total population in our country will be constant. However, this doesn’t address the fact that just like often it’s auspicious for the economy to produce more corn, it’s often auspicious for the economy, in labors’ shortage society to make more kids.

Hence, to make citizenships more liquid, governments can also sell rights to make kids. The price, I believe, will be the same with the market price of citizenships which should be listed in Wall Street.

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