Optimal Taxation I -- Public Economics V, 4/11

This series of online lectures provides an introduction to public economics. It is geared towards economics students with prior knowledge in microeconomics.
The course is based on the textbook Public Finance and Public Policy by Jonathan Gruber.
Course outline:
1 Tools of Public Economics
2 Public Goods
3 Externalities
4 Income Distribution and Welfare Programs
5 Taxation
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FAIR FEDERAL TAXES:
- Armed forces should be funded by a tax on individual and business capital. This is the same principle we apply to funding police and fire protection at the local level. (i.e. TAX WEALTH to fund DoD, CIA, NSA, VA, FBI, SS, Coast Guard, customs, border patrol, DEA, ATF, federal marshals, ...).
- USA should tax business revenue (not profit) to the extent necessary to fund Federal business services (DoA, DoC, DoD(R&D), DoE, HUD, DoI, DoJ, DoL, USPS, DoS, DoT, ...). Federal services with identifiable customers should be funded via fees. (e.g. parks, forests, Interstate highways, ATC, NRC, FERC, ...).
- Personal income should only be taxed to fund the few federal services that directly benefit people. (e.g. Medicare, Dept. of Health and Human Services, CDC, ...). A personal income tax provides a way for citizens to hire other citizens to do work that benefits everyone. The personal income tax revenue should match that part of the Federal payroll (including contractors) to fund the few federal services that directly benefit people.
Aside: It is a bad idea to fund operations with debt.
Debt should only be used to "buy now, pay later (as used) " on durable infrastructure that cannot be funded by service fees. (e.g. school buildings, highways, storm drains, ecological improvements). If the Federal Debt exceeds the properly depreciated value of Federally-owned durable infrastructure, we should TAX WEALTH to restore the balance.