State, Public Sector and Theoretical Prerequisites to a Model of an 'Economy Without Taxes'
International Journal of Social Economics, Vol. 27, No. 1-2, 2000
17 Pages Posted: 2 Dec 2012
Date Written: November 29, 2012
The paper offers a new view of the role of state based on recognition of the economic ability of the state as a separate factor of production. This approach gives indirect taxes the status of factor income as state profit. If we were to apply the mechanism of producing and purchasing private goods to public goods, direct taxes would be replaced by the state loans that are non-repayable, but yield interest, or by irretrievable loans with computed interest. This case is illustrated by the budgetary equations in the model of an “economy without taxes.”
Keywords: Production economics, State, Markets, Public sector, Taxation
JEL Classification: D33, E62, H41, H42
Suggested Citation: Suggested Citation