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In modern economies taxes are the most important source of governmental revenue. As we will show through consideration of the UK case, this also potentially allows this cancellation role to be combined with the use of tax to promote social policy objectives considered desirable by society and policy makers alike. I applaud your efforts to develop the theory and practice of taxation to align them with the insights provided by MMT, but, as I am sure you aware, the mendacious, self-serving defenders of the status quo will seek to thrash the outcome using the hoary old “tax and spend” meme. The first section of this article explores the potential roles and functions of taxation within the framework of MMT. It fulfils a social purpose distinct from revenue raising.
We begin that process here with specific reference to social policy and encourage other scholars to further develop and apply these insights in future research. 4. Ruane, Sally This emerges through MMT’s account of the process of money creation, the spend-tax cycle that results and the ‘cancellation’ function performed by tax. Suggesting that one of MMT's major contributions is to reverse the understanding of the revenue cycle will, for some, be contentious: they will place the emphasis elsewhere. A recommendation emerging from that assessment was that all allowances and reliefs offered in the UK should be systematically evaluated to determine: their cost; their economic effectiveness; the benefits arising from continuing to offer them; and any impact of their withdrawal. Sentence seems to be incomplete. I am not arguing that tax is the only tool for controlling inflation, although in my view it is vital, The JG does not, poer se control inflation in my view, and I know there is disagreement on this issue, I am not diminishing the JG: I want everyone to have the gainful employment they desire. The Hidden Welfare State: Tax Expenditures and Social Policy in the United States, Institute for Fiscal Studies Briefing Note 243. : "http://www. Challenges for social policy in the UK, The age of austerity: contesting the ethical basis and financial sustainability of welfare reform in Europe, Taxation of social insurance and redistribution: a comparative analysis of ten welfare states, A National Plan for the UK: From Austerity to the Age of the Green New Deal, The Divided Welfare State: The Battle Over Public and Private Social Benefits in the United States, In Stark Relief: How Inheritance Tax Breaks Favour the Well Off, Good Times, Bad Times: The Welfare Myth Of Them And Us, Estimated Cost of Principal Tax Reliefs (January 2019), Individual Savings Accounts (ISA) Statistics. In other words, what’s required looks like a complete redesign of the UK economy and its information systems.
In this sense, the reservations they raise should not preclude efforts to consider more thoroughly the implications of MMT insights for tax.