A rough experiment to measure effects of taxation changes
DragoonXRyu
This week's market:
Disclaimer: This is the price of the lowest offer in the market at the time of record. I realize that this is a rough keeping track of the market as any accurate recording would have to take into account volume and velocity of sales.
This post is a response to QXLOp's article and I was originally writing it out as a comment but found it it's becoming too long that it really deserves its own post.
With the lack of economic tools in congress, a rough way to measure effects of taxation would be:
1) Log every day how much went to PH government coffers for about a week (week 1)
2) Pass law to adjust a single tax rate by 1%
3) Measure PH government income for another week (week 2)
4) Pass law to undo 2
5) Measure PH government income for another week (week 3)
6) re-pass law #2
7) Measure PH government income for another week (week 4)
8 ) Repeat, adjust tax rate in another area
In theory, week 2 and week 4 would have increased revenues as an effect of the increase in taxation. In practice, of course, this is not as simple. Numerous forces (e.g. wars, changes in supply and demand, world market, adjustment crossing a threshold, etc.) influence buying/selling behavior.
What do you think? Is it worth the effort to do this activity knowing that we risk gathering false data? Do you know of any tool out there?
Comments
that's a great idea but everyone should agree first and it takes a lot of time. And what if the number of people who log in changes. it will change the amount of money that moves around the market and therefore will also affect the tax revenue.
@Vincenzo Roque: The time element is there to smoothen out the differences a bit. Of course the more time you have, the larger window of opportunity any disruption can come in. Having said that, maybe adjusting the time span from a week to a couple of days would be a compromise, I think.
Given the amount of tools that we have (i.e. none), that's the easiest (not necessarily the most correct) way I can come up with.
well yeah, it seems to be the best thing we can do
I think Hekter made some calculations before.