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France: We Should All Pay "International Taxes"

Another great idea from the cosmopolitan set.

French President Jacques Chirac will put forward ideas for an international tax scheme that would help build a 50-billion-dollar war chest to fight poverty during a 55-nation conference on economic development opening Monday in New York.... Their document suggests that a tax could be imposed on greenhouse gas emissions as well as certain financial transactions, arms sales or multinational corporations.

Other proposed approaches raise the possibility of taxes levied on ships transiting key maritime straits, airline tickets, credit card purchases as well as an international lottery.
For "greenhouse gas emissions," read, "Kyoto 2." Since the whole point is to find a way for the international community to lay claim to part of your paycheck, this plan would need the same unfair standards that characterized Kyoto, designed to punish the United States for every bit of economic activity while giving credit for not one of our greenhouse-gas sinks.

The rest of these would hamper economic activity worldwide, except perhaps for the lottery. The lottery is the only one of the lot that would have a decent chance of passage, probably raise enough to achieve its goals without crushing economic activity, and not be unfairly aimed at the US. Sounds good, right?

Well... one problem. Lotteries tend to be patronized by the poor. My old economics professor said that lotteries were "a voluntary tax on stupidity." Georgia has one, which it uses to pay for college education for citizens who can maintain a 3.0 or better GPA. Thus, take from the dumb and give to the relatively smart or hard-working: a good plan overall.

But the whole point of Chirac's plan is to give to the poor, who are the very ones most likely to be buying these tickets. Ban their sale in poor nations? Hello, black-market: the poor still buy the things, desperate for the dream a winning ticket represents, but at inflated prices due to the costs of smugglers-as-middle-men.

Helping the poor is a worthy goal, one that we should all work toward. But it has to be done voluntarily, or the problems it creates are greater than the effect of the solution.

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