(15) Nahid Aslanbeigui and Guy Oakes (2012, 139-142; 2015, 108-110) have presented the case for the view that Pigou's change of mind on the capital levy is an illustration of the 'historicity' of his approach to policy analysis.
For example, the discussion of the capital levy to reduce the burden of public debt is couched in terms of the impact that it will have on revenue.
The Committee's final report, released in 1927, followed Pigou's line of reasoning by concluding that there was no clear evidence supporting the alleged benefits of a capital levy: 'Certainly, whether regarded as a means of lightening the annual burden of industry, or as a means of reducing indirect taxes and increasing expenditure on social objects, it [the levy] would, in our opinion, yield physical results quite disproportionate to the magnitude of the operation' (Committee on National Debt and Taxation 1927, 293).
"A Capital Levy: The Problems of Realisation and Valuation." The Economic Journal 28 (110): 157-166.
Absent an instrument that allows households to borrow from the government, the government cannot carry the proceeds from a large initial tax to future periods, and the single capital levy
prescribed in Chamley (1986) cannot be implemented.
The decision to form an independent monetary authority is most likely to be made when rival political parties have little to lose by cooperating to restore a depressed inflation-tax base, such as immediately following an inflation-based capital levy that has greatly increased the public's estimate of the likelihood of future high inflation.
We hypothesize that the seigniorage motive did not produce fiat money before the 20th century(17) because (redeemable) banknotes had not yet become commonly accepted in areas of lesser financial sophistication, so those areas could not be subjected to a capital levy by the government's monopolizing the issue of banknotes and permanently suspending redemption of government notes.
That being the case, his section on the capital levy
was essentially a blocking technique.
And it represents a dangerous new phase in the politico-economic development of the "new world order." It is not mere chance that the "capital levy" for common depositors was first tried on tiny Cyprus.
In addition to a globally coordinated wave of "capital levy" taxation, the IMF/central banks axis of evil is also pushing an agenda of global inflation (under the labels of "stimulus" and "quantitative easing") and global regulation (under the label of "macropru-dential policy").
Among the most jarring proposals in the 107-page report is the suggestion of a "one-off capital levy." Following so closely on the heels of the IMF's Cyprus levy, the implications are ominous, to say the least.
Another option floated by the city is asking voters to approve a capital levy
of up to 10 years to cover public improvements related to a hospital development.