Show host Gene Tunny delves into listener feedback on recent episodes regarding the feasibility of tax cuts preceding spending cuts ("starve the beast"), a capital gains tax on property, and the practicality of Georgist land taxes. He explores the complexities behind Australia's productivity challenges and regulatory capture issues raised by listeners.

Please email Gene your thoughts on this episode via contact@economicsexplored.com.

Timestamps

• Feedback from Listeners and Show Updates (0:00 )
• Discussion on the Starve the Beast Theory (2:26 )
• Listener Feedback from Australia (8:25 )
• Georgism and Property Taxation (20:11 )
• Feedback on Productivity and Regulatory Capture (26:25 )
• NDIS and Labour Force Participation (30:16 )
• Tax Reform and Efficiency (41:15 )
• Closing Remarks and Future Plans (50:21 )

Takeaways

1. Tax Cuts Need Matching Spending Cuts: The "starve the beast" theory—that tax cuts alone will force spending cuts—is usually ineffective, historically resulting in higher deficits and debt.
2. Capital Gains Tax Controversy: Taxing capital gains on family homes would be politically unpopular and controversial.
3. Productivity and NDIS Debate: Growth in social services sectors, such as Australia’s National Disability Insurance Scheme, may negatively impact productivity measures, although this growth may also bring social benefits.
4. Avoid Regulatory Capture: Effective regulatory reform requires vigilance against corporate lobbying and vested interests to ensure regulations genuinely benefit the public.

Links relevant to the conversation

Previous episodes: 

Australia’s productivity problem w/ John Humphreys:

https://podcasts.apple.com/au/podcast/australias-productivity-problem-can-it-be-fixed-w-john/id1480645795?i=1000712724732

Rethinking Property and Taxation: The Georgist Approach w/ John August

https://podcasts.apple.com/au/podcast/rethinking-property-and-taxation-the-georgist-approach/id1480645795?i=1000703744281

Fixing Australia’s Housing Crisis: Fusion’s Plan w/ Owen Miller

https://podcasts.apple.com/au/podcast/fixing-australias-housing-crisis-fusions-plan-w-owen/id1480645795?i=1000700967776

Livestream on superannuation with John Humphreys and Cameron Murray:

https://www.youtube.com/live/SlGCSaiGCVU?si=sj-ySFaccJUm08sg

Articles on the failure of the land value tax in the early 20th-century UK:

https://marginalrevolution.com/marginalrevolution/2025/03/the-failure-of-the-land-value-tax.html

https://worksinprogress.co/issue/the-failure-of-the-land-value-tax/

Book review of Kaldor’s Expenditure Tax monograph:

http://piketty.pse.ens.fr/files/Kaldor1955ExpenditureTaxDebate.pdf

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