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[I really enjoy your blog and find every post to be very thoughtful and interesting]

Being a citizen of Canada and of one of the Nordic countries, I agree the Nordics have largely forsaken the tax policy you describe. This is IMHO as much due to efficacy reasons as to cultural ones -- their citizens are more agreeable to the higher involvement of the state in their daily lives that these sorts of policies naturally entail.

And I think this needs to be more widely read - I'll try and get Mark Thoma to pick this up.

I happen to have always thought this - mainly because income is so hard to define and because it is hard to define progressive tax systems that don't have perverse effects on savings and investment.

Okay, I don't follow and I'm lazy. Where are the revenues for the transfers supposed to come from if not from progressive taxation?

The short answer is consumption taxes. A longer answer is here, and I'm working on an even longer version that I hope to post in a couple of days.

Ah yes! I remember you now.

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