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Indeed. Corporate taxation makes for good applause lines, but at least in our particular system it's basically a giant target for "lobby for special tax breaks, but only if you're rich enough to hire a staff of lobbyists."

My favored solution is having two taxes: a heavily progressive consumption tax, and a flat capital gains/etc. tax. Because what people usually are bothered by are the Paris Hiltons of the world, not the humble billionaire featured in the article.



How about an externality tax? Anything that hurts anyone else, even via causing jealousy, gets taxed as appropriate for the size of the externality.


Taxing externalities is, of course, a good idea, and key to any functioning system of property rights.

I don't believe they should be used for revenues, because once you do that, it misplaces the incentive: now the government makes more revenue per unit externality. So I favor a flat rebate for all externality taxes.




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