Neoliberalism Questions Medium
The neoliberal view on income tax is generally in favor of lower tax rates and a simplified tax system. Neoliberals argue that high income tax rates discourage economic growth and investment, as they believe that individuals and businesses should have the freedom to keep more of their earnings and allocate them as they see fit. They argue that lower tax rates incentivize work, entrepreneurship, and investment, leading to increased economic activity and ultimately benefiting society as a whole.
Neoliberals also advocate for a simplified tax system, aiming to reduce complexity and loopholes. They argue that a simpler tax code promotes transparency, reduces compliance costs, and encourages tax compliance. By streamlining the tax system, neoliberals believe that it becomes more efficient and less burdensome on individuals and businesses, allowing for greater economic productivity.
However, it is important to note that the neoliberal view on income tax is not uniform, and there may be variations among different neoliberal thinkers and policymakers. Some neoliberals may support certain progressive elements in the tax system, such as targeted tax credits or deductions, to address social inequalities or promote specific policy objectives. Nonetheless, the general emphasis within neoliberalism is on lower tax rates and a simplified tax system to foster economic growth and individual freedom.