This article from the orange book (micro signal chengpishu), author A Jian, the daily planet Odaily authorized reprint.
Two days ago we had a talk about “tax” harberger article, this concept before the discussion in China is very few, and in the article after the release, we are very pleased to receive many different voices. Among them, old friends from Ethfans a sword is especially worth reading.
We often envy abroad have more high-quality technical discussion atmosphere, now, very pleased to see the orange book, slowly began to have different friends, in the form of exchange of views, really have some impact, inspiration and Speculation — this is what we think, than a digital reading, more the value of things.
This article is a sword from the teacher’s point of view, read if you have your own ideas, as in the comments posted exchange.
Yesterday in the orange book and Ren Xin’s interview, I think I just have some idea about Harberge-tax, you can write down and discuss. However, in order to better express my meaning, still have to write down some basic introduction, because the introduction contains a very important clue reasoning.
A brief introduction.
The Hardberger tax (Harberge-tax): (1) the implementation of the tax on assets, the asset price in a certain proportion of the tax levied regularly; (2) the price of assets by asset owners themselves are given; (3) after the assets are assets, the price of the assets can become transaction price, if one is the price, asset owners unless a higher price, otherwise it can not sell.
Because the property (1) and (2), someone will tax harberger summarized as “self-assessed tax”, namely “self commitment taxes”.
Some people believe that the harburger tax will reduce the efficiency of investment (defined as “the owner of the property investment in order to increase the ability of the value of the property), but will improve the allocation efficiency” (defined as “property will be assigned to the efficiency of the most productive hands).
I hope to provide a more detailed analysis of the economics here.
Two economic analysis.
(a) the difference between the rent and tax
In the economist, to clarify the difference between “rent” and “tax” most clearly, than Professor Zhang Wuchang. My analysis here is based on the interpretation of professor.
“Rent” which we usually talk about the rent, the obvious features are: the use of resources or property tenants do not have the value, finally produced much residual, according to an economic surplus has nothing to do with the arrangement to the owners of the assets to pay, such as rent, rent. In the allowable range, and whether the user owners (tenants) produced a number of economic surplus, not to use free of charge, the use of the money, the tenant can also enter it. If it is not whether the revenue and charge a fixed fee, that is the so-called fixed rent; and if according to a resource use profits generated by independent index for a certain proportion of the rent is called into rent, such as tenant and landlord according to production sharing; distributors and manufacturers by sales into.
“Tax” is the opposite, but according to the economic surplus (understanding is the general sense of the rude little profit to) to levy taxes, at the same time, provides what economic resources are not clear, such as the profits of the business tax, personal income tax.
Professor Zhang Wuchang reasoned, Chinese VAT is not rent tax, it is wonderful: the value-added tax is the enterprise in the operation of value-added tax charge a certain percentage of the profits, and not to charge a certain percentage of the tax, but for the enterprise value into the rent; and the government provides (reached) the state-owned land resources.
So, what is the rent tax or tax harburger? Rent is obvious. 1) tax and rent have obvious difference, that is because the tax collector provides what economic resources, provides many in fact is not clear, so the tax is not imposed on the assets, can only be applied in economic activity (the results); but the rent does not have this restriction; so Berg tax is not a tax., including the so-called property tax, is in fact not a tax, but tax and rent; 2) harburger “owners” regardless of the use of the assets gained much profit, as long as you still continue to receive, rent is obvious.
Clarify these points, we consider tax harberger or should be called rent — the economic meaning of hubbard.
(two) economic implications
1, the definition of property tax actually harburger to the government, or the lessee harberger tax, rather than to the name of the owner. As long as you understand this is a rent rather than a tax, the economic meaning is clear: if every month I have to pay a sum of money to one of the main A to continue to use some kind of economic resources, the economic resources belong to who? What is A ah, I in order to use the economic resources to pay the rent ah A is equal to, you told me about the resource registration meaningful in whose name?
2, obviously not for personal tax harberger labor and intellectual assets collection. The reason is very simple, one is because of personal labor assets is the most extreme all belong to the individual, the collection since did not provide any resources, also will not receive the rent; on the other hand, you buy my labor assets, no meaning, I have not done this for freedom — unless you want to tax the basic principle of law that we respect individual freedom of choice in a limited range of completely abolished.
Use 3, harberger tax more widely, impede the economic development of the big.
1) in life, you will find that the lease contract is a time limit, and the difference between the resources in different period are often large, the reason for the rapid adjustment of contract is relatively stable, ca.. But the harberger tax without any time limit, always in frequent price adjustment, price adjustment can do not think that is good, “the rise of the western world in the north,” said in the good, the feudal system of Europe under the tenant generally used are long, because the short about frequent bargaining, bargaining and time-consuming. If the tax is extended to those for harberger about resources, will make the combination of resources of entrepreneurs face more uncertainty. Do you think the entrepreneur is very not easy to find a good machine factory, moved in, to power production, you suddenly said that the factory was bought by others, can not be used in production, which is what happens? This brings to second points:
2) you can certainly produce a key resource in the decision to entrepreneurs rent, in order to protect themselves in a whole production decision in investment, there is no doubt that entrepreneurs willing to pay the rent, but the problem here – harburger tax is not fixed rent, but the rent is divided into, and it is not divided into some economic output. It is divided into the value of the assets; is the entrepreneur of the economic surplus value of the assets in the. For example, in the related resources to adjust the situation, how much is the highest evaluation of entrepreneurs on their own land use? He is the highest rent related in this land investment earned value (i.e., the main products of the monetary income minus production direct monetary cost), the highest rent in the condensation of Entrepreneurship (i.e. he allocation of production resources to pay for you) the rent received a rent into it, is the reactive power by Paul, have a choice, the entrepreneur is not acceptable. This can also explain the admission into the rent, but not for the tenant rent economic surplus, but the agricultural output value or rent. (also, divided into free adjustment into the rent rate is the key to the efficient if SHARETENANCY free adjustment, not often have to rent into a certain amount of economic resources allocation to the efficient operation of the state. The specific content, I am not professional, please see Professor Zhang Wuchang’s “the theory of share tenancy” and “China economic system”)
In 4, Hubbard tax is actually a kind of extended poor tax. This is actually the three points added: if you found an economic resource, but in order to use the economic resources you have to pay the rent to others, you will appear in this report resources to others? In fact, to use the harberger tax, reached must ensure that already know the distribution of global resources, because no one has the power to their mastery of economic resources publicly, but will say in front of the harburger tax incompetent assets will be one of the economic value of protection. In addition, if a people will rely on economic production to another resource, harberger tax will rapidly depleted; but the collection of economic production results will not encounter this problem, whether you use intelligence or labor to make money, income tax is the same as the.
If you are keen, you will find that the harburger tax is actually arranged one has all the resources of a category to rent this monopoly with China is not a bit like? The government is not China owned all of the land? He is not with the value-added tax to rent? Why doesn’t he have to rent harburger tax? I want to go to the reader.
Three. The president and the orange book part view comments
1, the Hardberger tax will encourage resources into the market?
Not. See “section Fourth” economic meaning. You can take another combination with harberger tax do a comparison: “private property rights +”. The preemption right is like the development of the western United States and Qin Shang Yang’s reform, you first land is your land registration, pay a sum of money on the line. You see, in the two system, which would you prefer to have a report on their economic resources?
2 and idle in your house of the camera is a waste of resources?
It is difficult for me to accept this argument. From the angle of economics of “waste” is defined here is not discussed. In fact, a part of your home idle resources are insurance instead of idle resources, partly because the transaction costs are too high, so you do not sell out, for example, to determine the quality of buyers, second-hand goods is very difficult; some resources to bring benefits to both parties have to pay the low transaction costs so, only idle. In fact, some of the forum will have a lot of second-hand transactions, you can see. To solve this problem is to rely on to reduce the transaction costs, rather than accept what you rent to my rent, I can say that the price is zero, I could lose.
3, blind bidding is a waste of resources?
Unless you don’t put the owner when people, otherwise you can only recognize the owner price to quote is reasonable and effective, even if he’s lying. The utility is the so-called welfare and cannot be compared between individuals, forced me as I do not accept the price, increase the welfare of others, reduced my welfare, is big or small? So the sand can be my world, is my heaven, unless you don’t treat me as a person, take it out of my hands with deprivation.
In 4, Hubbard tax can raise the efficiency of the allocation of the patent?
Not. Because the tax harberger wouldn’t go to the people, but the intellectual patent protected by other forms, such as the so-called commercial secret. Many people don’t realize that in fact there is a convenient patent intellectual activity of division of labor and intellectual resources lease and use. Because the patent is written down more or less always revealed put it down in black and white, therefore, when there is some information; grasp the secrecy situation, many people will choose to be publicly registered patent, and the core for the protection of commercial secrets, commercial secrets of others uncovered you have no right, but who may rise the effect better than patent. If the registration of patents to pay the rent, which is equal to the patent is not for me but for you, my choice is not registered with the patent and trade secrets to protect you if further, don’t let me keep the secret, the common law of the whole system will break down, you can put the whole down into the common law system in order to this tax? Anyway, everyone will hinder the secret intelligence activities division. The patent was used as weapons have? Of course, but if you only see this part, can not see the universality of patent, patent and swap lease market, then you are the trees in Taishan.
5, public ownership does not exist harburger tax?
On the contrary. Public ownership is the basis and destination harburger tax. Because harberger essentially negates the private property tax.
6, the most fundamental issue of extreme socialism and extreme capitalism can be unified?
Your words are what mean. China is the public ownership of land, the government rent, can still have a market economy (market economy is not capitalism problem is too boring I don’t want to talk about). But fundamentally, you cannot impose taxes on all things are harberger, because doing so would put everything into the public domain, there is no capitalism. In the most basic sense, socialism and capitalism are incompatible.
We live in a society in which private property rights, but a lot of people actually do not understand the meaning of private property rights, do not understand the reality of the contract system, how complex. At this point, a Harvard professor is not really to 10 years businessmen know better, I wouldn’t bet on it. The so-called “property is just another form of monopoly,” said is very beautiful, and it is right, but as long as you understand this sentence in the “monopoly” of the real meaning of the speaker to gimmicks and that won’t exist because the administrative monopoly is not quasi monopoly into the cause but, respect for individual freedom of choice, in a limited range of others can not be given a voice, this “monopoly” is not only what the low efficiency of the source, and it is the source of all efficiency; free competitive market system, is to allow entrepreneurs competition market share, so as to stimulate the efficiency of the system. (end) author: Ethfans A Jian