An Economic Philosophy towards the Axiological Good via Taxation

Fred Y Ye

doi:10.22158/jetmm.v1n2p60

Abstract

Using synthetic epistemological model with axiological framework, it is revealed that tax reduction is good policy when tax rate is lower than normal, and that tax increase is good policy when tax rate is higher than normal, during economic overheat. Meanwhile, it is found that tax reduction is good policy when tax rate is higher than normal and that tax increase is good policy when tax rate is lower than normal, during economic depression. Around two economic issues: 1) how to distribute social wealth between rich agents and poor ones, as well as nations and enterprises? 2) how to maintain social justice via making balance between equality and efficiency? It is suggested to apply elastic tax system towards the axiological good in social economy.

Highlights

Economics is a science on the goods production and consumption (Samuelson & Nordhaus, 2005), and the epistemology and axiology on the wealth distribution, related to economic philosophy (Mäki, 2012)
In this article, based on current economics knowledge, around two economic issues: 1) how to distribute social wealth between rich agents and poor ones, as well as nations and enterprises? 2) how to maintain social justice via making balance between equality and efficiency? I combined an epistemological model with axiological framework to explore the solutions to explain national economic policies towards the axiological good, in which taxation plays a central role
The Good of Wealth Distribution There are two economic issues concerned by economic philosophy: 1) How to distribute social wealth between rich agents and poor ones, as well as nations and enterprises? 2) How to maintain social justice combining equality and efficiency? Taxation is a technical matter, and preeminently a political and philosophical issue, perhaps the most important political economic issue

Summary

Introduction

Economics is a science on the goods production and consumption (Samuelson & Nordhaus, 2005), and the epistemology and axiology on the wealth distribution, related to economic philosophy (Mäki, 2012). Economists studied the macroeconomics via interest rate and exchange rate (Friedman & Hahn, 2000; Tobin, 1969; Floyd, 2010), considered the welfare economy and wealth redistribution concerning efficiency and equality (Feldman & Serrano, 2005; Nicola, 2013). From both macroeconomic and microeconomic views (Arrow & Debreu, 1954; Samuelson & Nordhaus, 2005), taxation is a key element in economic system as an interdisciplinary issue (Lamb et al, 2005), www.scholink.org/ojs/index.php/jetmm. In this article, based on current economics knowledge, around two economic issues: 1) how to distribute social wealth between rich agents and poor ones, as well as nations and enterprises? 2) how to maintain social justice via making balance between equality and efficiency? I combined an epistemological model with axiological framework to explore the solutions to explain national economic policies towards the axiological good, in which taxation plays a central role

Methods

Discussion

Conclusion