Old idea

Noticed while looking for something else. Back in 2013 I came up with a pretty decent idea, then forgot about it.

= = = = = START REPRINT:

Was thinking about idiot Repooflican opposition to the Online Sales Tax, when a bigger point struck me.

Our entire tax system is designed to discourage local production. Think about it: When you sell INSIDE A STATE, you pay MORE than when you sell OUTSIDE A STATE. When you bring something in from overseas, whether it’s parts or labor or a worker, you pay no tax at all.

This is exactly backwards.

We should be tipping the gradient the other way, encouraging things to be produced (or services to be provided) closer to where they’re sold.

Solution: Replace all income and sales taxes with a DAT. Distance Added Tax.

The DAT would be a VAT weighted by distance. Each time an object or a worker or an hour of labor is transferred from seller to buyer, whether by ship or truck or web, it should pay tax according to the distance it moves. If it stays within one metro area, or within a 100 mile radius, only the VAT with no distance weight. Tax increases for each added 100 miles between source and user. Ohm’s Law.

This would automatically provide tariffs on incoming stuff, incoming labor, and incoming workers, without the need to negotiate new treaties.

= = = = = END REPRINT.